The structuring of the deal could have been less complex and a lower equity bloat would have helped
The end goal of Fortis Healthcare Ltd’s restructuring was to create two listed entities, one focused on the hospitals business and the other on diagnostics. It has set about doing this in a complicated way. While the purpose will be achieved, the restructuring creates a resulting diagnostics business with a rather bloated equity base. One concern could be that private equity (PE) investors in the diagnostics business may decide to exit via this route.