fortis malar hospital: Fortis sells Chennai hospital to MGM Healthcare for Rs 128 crore

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Fortis Healthcare said on Friday that it has signed definitive agreements to sell Fortis Malar Hospital in Chennai, to MGM Healthcare Private Limited for about Rs 128 crore.

The deal is for the sale of the business operations along with the land and building assets pertaining to Fortis Malar Hospital situated at Gandhi Nagar, Adyar in Chennai.

The transaction will be an all-cash deal and is estimated to be consummated by end of January 2024, the company said in a statement to stock exchanges.

The divestment is a part of Fortis’ ongoing portfolio rationalization strategy in order to focus on deepening its presence in select geographic clusters where it has a sizable presence. As part of this strategy it has early this year divested 110 beds from Arcot Road hospital in Chennai to Kauvery Hospital for Rs 152 crore.

With the sale of Malar Hospital, Fortis has exited Chennai market.

The Gurugram-based hospital chain has identified Delhi NCR, Mumbai and Bengaluru as key regions for expansion.The Fortis Malar Hospital is approx. a 140-bed facility and has been facing certain legacy issues.“The proposed divestment of the Fortis Malar facility underpins our focus on optimizing the current portfolio of our hospital assets with a view to prioritize our growth and expansion in other key markets and re-allocate capital judiciously,” said Dr. Ashutosh Raghuvanshi, MD & CEO, Fortis Healthcare.

“This is our second under performing asset divestment in the last 2 quarters and emphasizes our resolve to improve our overall profitability and margins in the hospital segment,” he added.

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