Fortis Healthcare Ltd has decided to demerge its diagnostics business, including the business of its majority owned subsidiary SRL Ltd into its another listed entity, Fortis Hospitals Ltd. Following the demerger, the business of SRL will be merged with the Chennai-based Fortis Malaras part of the composite scheme.
With the demerger, all the diagnostics business of the Group would come under the entity, which is currently the Fortis Malar Hospitals while the latter’s hospital business will be sold to Fortis Healthcare by way of slump sale for a cash consideration of Rs 43 crore. Fortis has two listed entities, Fortis Healthcare and Fortis Malar, and the idea is to bring all the hospital businesses under Fortis Healthcare while all the diagnostics business will be brought in under the second listed entity, subject to statutory and regulatory approvals. The name of Fortis Malar will subsequently be changed to SRL Ltd and the company is proposed to be listed on the National Stock exchange in addition to its current listing on the BSE.