Fortis Healthcare promoters Malvinder Mohan Singh and Shivinder Mohan Singh have stepped down from the company’s Board of Directors. Also , Malvinder Singh resigned as executive chairman of Fortis Healthcare , Shivinder Singh as non-executive vice chairman.
The Singh brothers’ Religare Enterprises Ltd announced a shakeup late on Tuesday , with Malvinder Singh stepping down as non-executive chairman of the financial services and small-business lender while four other officials also resigned.
Separately , another Singh holding , Fortis Healthcare Ltd , offered to buy the assets of its Singapore-listed RHT Health Trust as part of a broader reorganization for Fortis , India’s second-largest private hospital chain by market value.
Fortis is offering to buy RHT Health for an enterprise value of Rs4,650 crore ($711 million). The transaction , which includes Rs1,152 crore of debt , would lead to improved profitability with service fees being eliminated as the hospital company integrates all the assets into its fold , Fortis said in its statement.In addition to Malvinder Singh resigning at Religare , its chief executive officer (CEO) and chief financial officer (CFO) quit , as well as the company secretary and a board member. Religare said it appointed S. Lakshminarayanan as chairman, effective 14 November, and also named Krishnan Subramanian as new CFO.
Malvinder Singh will remain on the board. Religare’s board approved plans to raise capital and said it will review strategic options including partnerships. The company also reported a narrower loss for the second quarter.
Shares of Religare soared 10% in Mumbai trading on Wednesday. The stock is down 82% for the year. Fortis shares jumped 12% , trimming their year-to-date loss to 22%.