IHH Healthcare Set to Deepen Stake in Fortis and Malar: Open Offers and Strategic Moves Announced

Key Strategic Actions Could Signal Major Shift for IHH Investors

Kuala Lumpur, 16 October 2025 – In a significant development for investors, IHH Healthcare Berhad (“IHH”), one of Asia’s leading private healthcare providers, has unveiled a series of pivotal transactions that could reshape its presence in India’s burgeoning healthcare market. These moves include a substantial new share subscription in Fortis Healthcare Limited (“Fortis”), as well as mandatory open offers for both Fortis and Fortis Malar Hospitals Limited (“Malar”), marking a major strategic expansion for the group.

Key Points of the Announcement

• Subscription of New Fortis Shares: IHH, via its indirect wholly-owned subsidiary Northern TK Venture Pte Ltd (“NTK” or the “Acquirer”), is subscribing to 235,294,117 new equity shares of Fortis, each with a face value of INR 10, through a preferential allotment.
• Mandatory Open Offers:
  • For Fortis: NTK will launch an open offer to acquire up to 197,025,660 Fortis shares (an additional 26.10% of the expanded voting share capital).
  • For Malar: NTK will also make an open offer to acquire up to 4,894,308 fully paid-up shares (representing 26.11% of the voting share capital in Malar).
• Tendering Period: The open offers for both Fortis and Malar will run from 20 October 2025 to 4 November 2025 (5:00 p.m. IST), allowing shareholders to tender their shares within this period.
• Independent Directors’ Recommendations: The Committees of Independent Directors (IDC) of both Fortis and Malar have issued recommendations for shareholders regarding the open offers. These recommendations were published on 16 October 2025 and will be included in pre-offer advertisements set for publication on 17 October 2025 in the same Indian newspapers where previous announcements were made.
• Further Developments: IHH will continue to update Bursa Securities on any material developments, signalling ongoing transparency and potential for further price-sensitive news.
• Access to Offer Documents and IDC Recommendations: Detailed Letters of Offer (LoF) and IDC recommendations for Fortis and Malar are publicly available via BSE India’s website, providing in-depth insight for existing and prospective investors.

What Shareholders Need to Know (Potential Price-Sensitive Information)

• Potential Increase in IHH’s Effective Control: If fully subscribed, these transactions could significantly increase IHH’s stake and influence in both Fortis and Malar, strengthening its market position in India. This could have a notable impact on IHH’s future earnings profile and growth trajectory.
• Regulatory and Market Implications: The mandatory nature of the open offers reflects regulatory requirements upon crossing certain shareholding thresholds, and their success could trigger revaluation of IHH, Fortis, and Malar shares.
• Share Tender Opportunity: Current Fortis and Malar shareholders have a limited window to tender their shares at potentially attractive valuations, which could impact share prices in the short term.
• IDC Recommendations: The recommendations by the Independent Directors’ Committees are crucial for minority shareholders. These recommendations, made public and included in official advertisements, may influence the decision to participate in the open offer.
• Ongoing Disclosure: IHH’s commitment to timely disclosure of “any further material developments” suggests vigilance is warranted for additional market-moving news in the near future.

Investor Takeaway

The transactions announced by IHH Healthcare Berhad represent a significant strategic escalation in its India operations, with the potential to materially affect both its own share price and those of Fortis and Malar. With the open offer windows set imminently and the Independent Directors’ recommendations now public, investors should pay close attention to any further announcements and market reactions over the coming weeks.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors are advised to conduct their own due diligence and consult with their financial advisors regarding the implications of the announced transactions.

View IHH Historical chart here