Fortis mulling to increase stake in Agilus

The impending exit of private equity (PE) investors in Agilus Diagnostics Ltd could lead to IHH Healthcare Bhd’s associate Fortis Healthcare Ltd increasing its interest in the diagnostics lab chain in India.

“The PE investors, they plan to exit. If it is not an initial public offerig (IPO), then their stake will be up for sale, and it can go to the third party.”Fortis Healthcare also owns the remainder. There’s also an option for Fortis to acquire it, so there is a number of options with respect to Agilus Diagnostics,” he noted.

Dr. Prem noted that it is in the company’s interest to ensure the growth of Agilus Diagnostics, since it is one of the three big labs in India.

In February this year, IHH Healthcare announced that its indirect India-based subsidiary Agilus Diagnostics plans to abort plans for an initial public offering (IPO) on the Securities and Exchange Board of India (SEBI) due to commercial considerations.

Agilus Diagnostics is a material subsidiary of Fortis Healthcare, an indirect 31.17 per cent-owned subsidiary of IHH Healthcare.

The proposed IPO was to be by way of offer for sale of selling shareholders, private equity investors International Finance Corporation, NYLIM Jacob Ballas India Fund III LLC and Resurgence PE Investments Limited. New Straits Times