India's Wockhardt Hospitals, a subsidiary of the family-run Wockhardt pharmaceutical group, is to sell 10 of its hospitals to family-controlled Fortis Healthcare.
The deal is the largest in India's hospital sector to date and will significantly increase Fortis's presence across the country. The company will pay $187 million for eight working hospitals and two that are still under construction.
Malvinder Singh (pictured), Fortis group chairman, said: "The partnership will enable the vast pool of medical talent and quality healthcare infrastructure under the Fortis network to deliver a superior value proposition to the citizens of our country."
Wockhardt was founded in the early 1960s by Habil Khorakiwala, who still serves as the company's chairman. The group has been forced to sell a series of assets this year, including its animal health division, its nutritional businesses and its German business Esparma, after recording a net loss for 2008.
Wockhardt recorded revenues of $734 million in January 2009, an increase on the same figure from 2008. However, the company made hedging losses throughout 2008 as the rupee lost value against the US dollar.
The Singhs sold Ranbaxy Laboratories, their family business, in May this year. (Click here to read our coverage of the story) Since then the family has increased its involvement with Fortis Healthcare, which has three family members on its board of directors.
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