Key Highlights from the Announcement

• Major Transaction Completed: IHH Healthcare Berhad (“IHH”) has successfully completed a significant transaction comprising (i) subscription of new shares in Fortis Healthcare Limited (“Fortis”) via a preferential allotment, (ii) a mandatory open offer for additional shares in Fortis, and (iii) a mandatory open offer for shares in Fortis Malar Hospitals Limited (“Malar”).
• Share Acquisition Details:
  • Fortis Subscription: IHH, through its indirect wholly-owned subsidiary Northern TK Venture Pte Ltd (“NTK” or the “Acquirer”), subscribed to 235,294,117 new equity shares of INR 10 each in Fortis.
  • Fortis Open Offer: NTK launched a mandatory open offer to acquire up to 197,025,660 Fortis shares, representing 26.10% of the expanded voting share capital.
  • Malar Open Offer: NTK initiated a mandatory open offer to acquire up to 4,894,308 Malar shares, representing 26.11% of Malar’s voting share capital.
• Open Offer Results:
  • As at the close of the tendering period (4 November 2025), and subsequent confirmation by BSE Limited (7 November 2025):
  • IHH (via NTK) will hold 235,295,895 Fortis shares, representing 31.17% of Fortis’ share capital.
  • It will also hold 11,756,925 Malar shares, representing 62.73% of Malar’s share capital.
  • Acceptances received under the open offers were relatively low: only 1,778 Fortis shares (0.0002%) and 4,523 Malar shares (0.02%) were tendered during the offer period.
• Transaction Timeline:
  • The transaction has been in progress since July 2018, with multiple announcements and regulatory steps completed over the years.
  • The latest milestone is the confirmation of the tendered shares and the finalization of shareholding post open offer.

Important Information for Shareholders

• Significant Increase in Stake: IHH now holds a controlling stake in both Fortis and Malar. In Fortis, the stake is increased to over 31%, and in Malar, it is now over 62%. This is a notable strategic move and may have a material impact on IHH’s consolidated financials and market positioning in India.
• Low Open Offer Acceptance: The open offer saw minimal shareholder participation, which means the change in IHH’s shareholding was primarily through the initial subscription. This could imply confidence among existing Fortis and Malar shareholders in the companies’ future under IHH’s management, or may suggest undervaluation of the offer price.
• Potential Price Sensitivity:
  • The acquisition consolidates IHH’s position in the Indian healthcare market, potentially enhancing revenue streams and operational synergies.
  • Investors should monitor further announcements for any additional developments or integration plans, as these could affect IHH’s share price moving forward.
• Regulatory and Procedural Updates: The company has stated it will continue to make timely announcements regarding any material developments in accordance with Bursa Malaysia’s requirements.

Additional Details for Investors

• Transaction Structure:
  • All shares were acquired either directly by NTK (for Fortis) or via Fortis Hospitals Limited (for Malar), both subsidiaries of IHH.
  • The enlarged shareholding is calculated based on the expanded share capital of Fortis (754,958,148 shares) and Malar (18,741,759 shares) as at 4 November 2025.
• Strategic Impact:
  • This move further cements IHH’s footprint in India’s private healthcare sector, positioning the company for future growth and potential cross-border synergies.
  • Shareholders may anticipate operational updates and possible improvements in profitability or market share as integration proceeds.
• Next Steps: Investors should expect further announcements regarding the completion of share transfers, payment of consideration, and any subsequent strategic initiatives by IHH.

Conclusion

The completion of these open offers and the increase in controlling stakes in Fortis and Malar represent a significant development for IHH Healthcare Berhad. This transaction has strategic implications for IHH’s growth in the region and could potentially be a catalyst for future share price movements, depending on how the integration and subsequent operational performance evolve.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities. Investors are advised to conduct their own due diligence and consult with professional advisors before making investment decisions. The information herein is based solely on the referenced company announcement dated 10 November 2025.

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