FHL signs pre-IPO agreements for 4 million shares

Mumbai, Jan 15 (UNI) Fortis Healthcare Ltd (FHL), one of the largest private healthcare companies in India, today announced the signing of definitive agreements (such as the 'pre-IPO pacts') for investment in the equity shares of FHL.

The first two pre-IPO agreements are for allotment of one million equity shares each to Raj Kumar Bagri (Lord Bagri), and Apurv Bagri, both of Metdist Group of Companies, (totaling 2 million equity shares), a FHL statement here said.

The third pre-IPO agreement is for allotment of two million shares to Trinity Capital (Eight) Ltd. The equity shares issued pursuant to the pre-IPO agreements, shall be subject to lock-in after the completion of the IPO, as per SEBI regulations.

Lord Bagri is the founder of the Metdist Group of Companies and is the President of the London Metal Exchange (LME), who was also named '2002 Copper Man of the Year' by The Copper Club, Inc and he was awarded with the honour of the Commander of Most Excellent Order of the British Empire (CBE) in 1995 by Her Majesty the Queen of England.

Apurv Bagri is the Managing Director of the Metdist Group of Companies and Member of the Board of the Dubai Financial Services Authority (DFSA). He is a visiting Professor at Cass Business School and a member of the Governing Council of the City University, London.

Metdist Group is a global metal trading firm based in London, U K and has a presence in U K, Malaysia, Thailand, China, UAE and India.

The Group has been in business for over 30 years with a group turnover of over USD 800 million in financial year 2006. The Group companies include Metdist, MetTube, Metrod, ASTA and an affiliate Avigo Corp. Metdist is one of the eleven 'Ring dealing' members of the London Metal Exchange (LME).

Trinity was created in 2006 for the purpose of investing in real estate and real estate related entities across India. On admission to the London Stock Exchange in April 2006, Trinity raised 250 million pound of equity by way of an offer to institutional investors.

FHL had earlier signed two pre-IPO agreements in December 2006, wherein a maximum of 5.96 million equity shares will be issued to each of (i) Quantum (M) LImited and (ii) Blue Ridge Limited Partnership and Blue Ridge Offshore Master Limited (totalling to a maximum of 11.92 million equity shares) at an average price equal to the IPO price, for an aggregate amount up to USD 33.33 million.

Subsequent to this and previous pre-IPO investments, the number of equity shares to be issued to the public in the IPO would be further reduced to the extent of the number of equity shares issued in the pre-IPO investments.

Commenting on the development, Shivinder Mohan Singh, Managing Director, Fortis Healthcare and Escorts Heart said, ''We are happy to have these quality investors on board with the pre-IPO placement.'' He added, ''A diverse range of investors are showing interest in the Indian healthcare sector and in Fortis.'' Fortis Healthcare currently has a network of 12 hospitals primarily in North India and 16 satellite and heart command centers (including one heart command center in Afghanistan). The hospitals include multi specialty hospitals, as well as super-specialty centers providing tertiary and quaternary healthcare to patients in areas such as cardiac care, orthopedics, neurosciences, oncology, renal care, gastroenterology and mother and child care.

The hospitals that FHL manages include Fortis La Femme, a 'boutique' style hospital that focuses on women's health and maternity care.

The Book Running Lead Managers to the issue are J M Morgan Stanley, Citigroup Global Markets India and Kotak Mahindra Capital Company.

UNI