The company was initially split in order to separate its profitable Indian operations from the international operations which had made a loss of $2.5 billion after a failed bid to acquire Singapore’s Parkway Holdings Ltd.
The new company, to be renamed Fortis Healthcare Ltd, will own a network of medical facilities across the globe including an interest in Lanka Hospitals in Sri Lanka. In total, the company owns 74 hospitals and also has facilities in Australia, New Zealand, Hong Kong and Vietnam.
Shares in the company fell as much as 1.8% to its lowest since February, over the news of the merge.
The company is expected to invest as much as $1 billion into the expansion of its operations in India and overseas over the next three years, according to Malvinder Singh, Chairman Fortis Hospitals.
According to Singh, the company generates $500 million in revenue from its operations in India and overseas respectively.
Singh had been quoted as saying “In a very short period of time we’ve been able to create a very substantial business internationally. Moving forward, there are huge benefits in terms of jointly leveraging medical, management capabilities and synergies.”
According to stock exchange filings in June, the Singh family controls 81.5% of the company of which 60% has been pledged as collateral to lenders, a stock exchange statement revealed.
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