Fortis is interested in buying Wockhardt Hospital

There is news coming in that Fortis is interested in buying Wockhardt Hospital. The Fortis management however refuses to comment.

CNBC TV-18 had earlier reported in December that Fortis is interested in picking stake in Wockhardt Hospital. The kind of valuations that had been talked about last time was same that they are valuing the company merely Rs 1,000 crore. They were interested in picking anywhere between 40-50% and they will be paying merely $ 100 million for it. But the main question was that valuations at that point of time also. However, the management said that they will not comment on market speculation.

When Wockhardt Hospital came up with an Initial Public Offering, they thought of raising nearly Rs 800 crore by diluting nearly 24% equity. That means they had valued the company over Rs 3,000 crore at that point of time but it didn’t materialize and they had to reverse their IPO. Then there were talks of all the private equity players like General Atlantic coming into the fray and picking up stake in the company. At that point of time the market was talking that General Atlantic is ready to pay nearly $ 140-150 million for anywhere between 20-25% equity. But valuation was a big question mark on that deal but after that slide what we have seen since beginning of 2008 to right now, there has been continuous erosion of the wealth, which has happened in Wockhardt Hospital and many other companies.

So, at this point of time, the market is talking that the company which was earlier over Rs 3,000 crore, now it is being valued merely Rs 1,000 crore. But nothing is official from the management and Wockhardt Hospital said that they will not comment. Fortis management clearly told that they will not comment on this speculation and this has been going in the market for a long time.

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