L&L acted for and advised Fortis Healthcare Limited [Fortis], a leading integrated healthcare delivery service provider in India, in its acquisition, from RHT Health Trust [RHT] of its asset portfolio of clinical establishments and hospitals in India. This involved the acquisition of equity securities, compulsorily convertible debentures and non-convertible bonds of the Indian entities of RHT Health Trust [RHT] from the wholly-owned subsidiaries of RHT [Transaction]. Pursuant to the completion of the Transaction, these entities have become wholly-owned subsidiaries (direct/indirect) of Fortis.
The acquisition of the securities pursuant to the Transaction, has been carried out for a consideration of approximately INR 4,650 Crore ( USD 653 Million).
The transaction is expected to be value accretive for Fortis and its shareholders, as it would save significant clinical establishment fees that Fortis currently pays. In addition, it provides Fortis full control over all the assets .i.e. hospitals enabling direct and more focussed management of the business. The transaction is expected to result in significant improvement in Fortis’ operating profitability in terms of EBITDA and cash flows, while also leading to interest savings.
The L&L team was led by Partners – Mr. Sundeep Dudeja and Mr. Vaibhav Kakkar, and consisted of Mr. Prashant Shah (Managing Associate), Mr. Sahil Arora (Senior Associate), Mr. Debarpan Ghosh, Ms. Bhavini Singh and Mr. Keshav Pareek (Associates). They were ably supported by Mr. Harish Kumar (Partner Designate) and Mr. Vivek Agarwal (Managing Associate), who provided invaluable inputs from a corporate law perspective.
