Fortis Healthcare (India) today said its board has approved acquisition of 86 per cent stake in Super Religare Laboratories (SRL) to be based on third party valuation by private equity fund Avigo Capital Partners, under which it is likely to pay around Rs 930 crore.
“The Board of Fortis Healthcare (India) Ltd in its meeting today approved to acquire SRL on the third party valuation, based on the Private Equity Fund Avigo,” the company said in a statement.
Yesterday, Avigo Capital Partners had picked up a 9.27 per cent stake in SRL in a pre-IPO placement for an aggregate amount of around Rs 100 crore.
If the deal is to be valued in the same manner as Avigo's stake acquisition in SRL, then Fortis is estimated to pay nearly Rs 930 crore for its stake.
Fortis had received an in-principal approval from its Board of Directors last week, to acquire 86 per cent stake in SRL.
Avigo had signed a share subscription agreement with SRL under which it will subscribe to 9.27 per cent of the post investment equity share capital of SRL for an aggregate amount of Rs 100-crore through its investment arm, Avigo PE Investments Ltd (Mauritius).
SRL had on February 17 filed a draft red herring prospectus with capital market regulator Sebi to come out with an initial public offering (IPO) of 2.8 crore equity shares through the 100 per cent book-building process. It is yet to get a clearance from Sebi.
SRL has a network of eight reference laboratories, seven Centres of Excellence, 181 network laboratories, 15 wellness centres and 888 collection centres, and as of the nine-month period ended December 31, 2010, had served 4.20 million customers, aggregating 33,000 tests per day.
Source: Economic Times