Billionaire brothers Malvinder and Shivinder Singh, who run healthcare and financial services business under Fortis and Religare banners, have decided to merge their public-listed healthcare IT solutions firm HealthFore Technologies (formerly known as Religare Technologies Ltd) with the listed NBFC Oscar Investments Ltd.
Following the merger, the combined entity will be renamed as Healthcare Technologies Ltd, subject to the approval of the scheme of amalgamation between the two entities, according to a stock market disclosure.
As per the scheme of amalgamation, shareholders of HealthFore Technologies will receive three shares of Oscar Investments for every 20 shares held in HealthFore.
"The amalgamation will provide HealthFore access to assets, a stronger capital base and talent pool generated by the merged business which can be deployed to drive sustainable organic and inorganic growth, creating
long-term value for the shareholders and other stakeholders of the combined entity," the company said.
The boards of HealthFore and Oscar have approved the scheme and will now seek regulatory approvals including the shareholders' approval. The merger will be effective from April 1, 2015, being the appointed date, under the scheme subject to receiving the mandatory approvals, it added.
While promoters own 49.44 per cent equity stake in of HealthFore Technologies, they own 70.68 per cent stake in Oscar Investments. Post the merger, they would own just under 70 per cent in the combined firm, as per VCCircle estimates.
Oscar Investments, incorporated in 1978, is a non-banking finance company that is registered with the Reserve Bank of India and listed on the Bombay Stock Exchange and the Delhi Stock Exchange. Oscar Investments at one time was one of the holding firms for Ranbaxy Laboratories. Singh brothers sold their entire stake in Ranbaxy to Daiichi seven years ago.
It counts investments in several group firms including public-listed Dion Global and several private firms of the promoters.
HealthFore Technologies is a healthcare IT solutions and advisory services company and provides B2B IT solutions to hospital chains, diagnostics centres and public health enterprises.
With over 200 professionals, HealthFore services customers in 15 countries spread across Africa, Middle East and Southeast Asia.