Fortis defers Rs 380-cr stake sale to GIC

“We would like to inform you that GIC would like to consider participating in larger fund-raising by the company as per the resolution passed in a board meeting dated June 9,2010,” Fortis said in a filing to Bombay Stock Exchange (BSE).

Consequently,the firm said that a deal announced in May to sell 6.58 per cent stake to GIC for Rs 380 crore via preferential allotment of 2.23 crore shares has been deferred.

“Like any other major investor,we constantly review our investments and will evaluate participating in the larger fund raising by the company,” Fortis said,quoting GIC.

Fortis also said its issue committee has approved allotment of 8.7 crore equity shares of Rs 10 each on conversion of warrants at a price of Rs 153 per warrant,aggregating to Rs 1,342 crore.

In March this year,Fortis had acquired 23.9 per cent stake in Singapore-based hospital chain Parkway Holdings.

The company is now facing a challenge from Khazanah for controlling the Singapore-based chain.

Khazanah,through its subsidiary Integrated Healthcare Holdings Ltd (IHHL),had made a USD 835-million partial offer to acquire 27.6 per cent stake in Parkway for a controlling stake of 51.5 per cent.

On June 9,the Fortis board had endorsed a proposal to hike the company’s borrowing limit to Rs 6,000 crore. It also got the board’s approval for raising up to Rs 2,750 crore through the securities market. It,however,did not give any explanation for taking such steps.

Market analysts pointed out that this could be an attempt by the company to raise money to launch a counter-offer,which may require funds to the tune of USD 2.3 billion.

Fortis has so far not clarified what it intends to do after the Khazanah partial offer for Parkway. It has been given time till July 30 by the Singapore securities regulator to clarify its position over the issue.