Escorts on Wednesday sold its Heart Institute to Ranbaxy-controlled Fortis Health Care for Rs 585 crore (Rs 5.85 billion), group chairman Rajan Nanda announced in New Delhi.
"We have sold 90 per cent equity in Escorts Heart Institute and Research Centre to Fortis on a total valuation of Rs 650 crore (Rs 6.5 billion). We are getting Rs 585 crore in the all cash deal," Nanda told PTI.
The deal is important for the crisis-ridden Escorts group, which was in the process of business restructuring to overcome its liquidity and debt repayment problem.
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"This takes care of some of our problems. It gets Escorts all the liquidity needed to build the business," Nanda said.
Asked about the remaining 10 per cent equity, he said Fortis has the option to buy this.
Earlier in the day, Anil Nanda, the younger brother of Rajan, moved the Delhi high court to prevent the process.
Apprehending litigation on the issue, Rajan Nanda had filed a caveat to pre-empt an ex-parte hearing. He, however, refused to comment on the issue.
"I have moved the court because the institute was supposed to be a charitable trust. And even after converting it into a limited liability company, going for sale is illegal in my view as it is misuse of public funds. I call it misuse because they will be using the money to clear the financial mess," Anil Nanda said.
Anil said that his two sisters were also with him, opposing the sale of the hospital, as their father wanted it to be a charitable trust.
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