Fortis Healthcare , one of the leading Indian healthcare chain is set to vertically demerge its diagnostic chain—SRL Diagnostics that will help the company getting listed on the Indian bourses. The move aimed at giving an exit route to the private equity Investors, who together own 34% stake in the company, two people familiar with the development said.
To give exit to some of the PE firms – International Finance Corporation, NYLIM Jacob Ballas and Avigo Capital Partners, SRL Diagnostics care had appointed Moelis & Co as advisor to facilitate the transaction in 2015. The announcement is expected after today board meeting. Fortis Healthcare spokesperson declined to comment. Some of the leading PE firms such as Baring Asia, Capital International and Bain Capital were in serious discussion to acquire stakes from the existing investors and even to increase it to majority. “The deal could not materialized due the valuation difference,” said the first person quoted above. In comparison, Fortis Healthcare that owns majority stake in SRL Diagnostics has a market capitalization of Rs 7,830 crore at current share price Rs 169 per share.