Fortis Healthcare Ltd said on Monday it will spend Rs 909 crore to acquire 10 hospitals from Wockhardt Hospitals Ltd, promoted by the founders of Wockhardt Ltd. At 3:02 p.m., Fortis shares were up 7.62 percent at Rs 117.20, while Wockhardt was up 9.39 percent at 177.65 rupees in a Mumbai market that was up 2.66 percent.
The acquisition, which is expected to be completed by the end of December, will result in an addition of 1,902 beds taking the aggregate bed capacity of the Fortis Network to 5,180 post the deal, Fortis said in a statement.
"The acquisition is expected to provide operating synergies and unleash new opportunities for growth, apart from delivering pan India presence to Fortis," the company said in a statement.
The 10 hospitals to be acquired, which include two greenfield projects under construction, are located in Bangalore, Mumbai and Kolkata. The acquisition will be effected through a wholly-owned unit of Fortis, it added.
Earlier this month, Fortis approved a rights issue to raise Rs 997 crore much of it slated to fund expansion.
Wockhardt is in the midst of restructuring its businesses and units and selling those it considers non-core to its operations, as it seeks to raise funds to settle some of its debt. Wockhardt Hospitals has been trying to raise money through an equity sale since its initial public offer was withdrawn last year on poor investor response.