Fortis in advanced stage to acquire Manipal hospitals

Fortis in advanced stage to acquire Manipal hospitals
PTI
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First Published: Mon, Dec 22 2008. 05 09 PM IST
Updated: Mon, Dec 22 2008. 05 09 PM IST
New Delhi: Medical services provider Fortis Healthcare is understood to be in advanced stages of negotiations for acquiring a majority stake in South India’s leading hospital chain Manipal Health Systems.
According to sources in the know of the development, officials of the Capital-based healthcare chain met Manipal Health Systems (MHS) counterparts last week.
“Talks are at a fairly advanced stage,” the sources said, however, hinting that valuation was proving to be a tricky issue to be resolved.
When contacted, Fortis Healthcare Managing Director and CEO Shivinder Singh declined to comment on specific deals that the company was looking for.
“No comments on speculations, we are keen to expand and looking for organic and inorganic opportunities,” he said.
Meanwhile, Manipal Health Systems denied the development and said it was not involved in any such negotiation with Fortis.
The sources, however, said both sides were keen on the deal as it would bring operational synergies.
While Fortis is keen to expand in southern and western regions, MHS has also been planning to spread its presence in North India.
Manipal Health Systems, which has 18 hospitals mostly located in South India with a total capacity of 7,000 beds, was founded by TMA Pai. It also manages around 55 primary healthcare centres.
Fortis has already announced around half a billion dollars expansion plan, which aims at having 40 hospitals by 2010.
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First Published: Mon, Dec 22 2008. 05 09 PM IST