Yes Bank acquires 17.31% stock in Fortis Healthcare

Mumbai: Private lender Yes Bank on Tuesday announced it has acquired more than 17 per cent share in Fortis Healthcare, making the bank the largest shareholder in the healthcare major.

In a stock exchange filing, Yes Bank said the 17.31 per cent equity in Fortis has been acquired in lieu of the default in loan repayment by the promoters of the healthcare company.

“Yes Bank has acquired 89,781,906 equity shares, constituting 17.31 per cent of the paid-up share capital, having nominal value of Rs 10 per share of Fortis Healthcare Ltd, pursuant to invocation of pledge on the said equity shares subsequent to default by promoters group companies in the credit facility provided by the Bank,” it said.

Last month, Fortis Healthcare’s promoters Malvinder Mohan Singh and Shivinder Mohan Singh had resigned from the company’s board days after the Delhi High Court upheld an international arbitral award of Rs 3,500 crore to Daiichi Sankyo against the former promoters of Ranbaxy Laboratories.

Fortis Healthcare is in the midst of a takeover battle, while there have been reports that international private equity major TPG-backed Manipal Hospitals is in advanced talks to merge Fortis with itself.

Banks and financial institutions have selling the shares of Fortis that were pledged with them against loans following the Supreme Court lifting an earlier ban on such sales.