Religare Health Trust, a Singapore-listed business trust housing physical assets and some businesses of healthcare services firm Fortis, is buying the Mohali hospital property from religious trust Radha Soami Satsang Beas for Rs 270 crore ($43.2 million), as per a stock market disclosure. It is also buying the clinical establishment unit of the hospital from Fortis Healthcare for Rs 15 crore ($2.3 million), as part of a larger deal.
The Mohali unit was the first hospital set by Fortis way back in 2001. At that time the group was largely associated with pharma company Ranbaxy, which was later sold to Daiichi Sankyo. The promoters diversified their business interests thereafter.
The disclosures indicate the Mohali property is owned by Radha Soami Satsang Beas, a spiritual group closely associated with the promoters billionaire brothers Malvinder & Shivinder Singh.
In a parallel transaction, Religare Health Trust is also paying around Rs 15 crore ($2.3 million) to Fortis Healthcare, the Indian public listed group firm, to acquire the clinical establishment business along with its associated assets.
The transaction is through Escorts Heart and Super Specialty Hospital Ltd (EHSSHL), a subsidiary of Religare Health Trust.
As a part of the deal, EHSSHL shall provide clinical establishment services in the Mohali hospital and Fortis Healthcare shall operate and manage this unit wherein it will provide specific out-patient and day care medical and healthcare services (OPD services) besides radiology and imaging diagnostic services.
Fortis Healthcare will pay a fee to EHSSHL as part of the arrangement while it will continue to manage and run the other side of the hospital, namely its medical and healthcare services, including in-patient services and emergency services.
The deal is seen as part of Fortis following an asset light strategy where the assets of its existing units are part of the Singapore firm while the Indian listed firm essentially provides healthcare services.
Two years ago, Fortis-sponsored Religare Health Trust had ($419 million) by listing its units on the Singapore stock exchange. Fortis, through its wholly owned overseas subsidiary, holds 28 per cent stake in Religare Healthcare Trust.
Religare Health Trust’s mandate is to principally invest in medical and healthcare assets and services in Asia, Australasia and emerging markets.
Fortis Healthcare shares last changed hands at Rs 97.75 per unit, down 3.5 per cent on the BSE in a weak Mumbai market on Monday.
(Edited by Joby Puthuparampil Johnson)