Hospitals everywhere are bulking up. The mega-merger of Manipal Health Enterprises (MHE) and Fortis Healthcare, announced last week, has created the largest hospital chain in India. The dealmakers are happy; shareholders and patients will come next.
At a town hall on Wednesday evening, the Fortis Healthcare management played up the external circumstances—problems at group financial services company Religare Enterprises, and demonetisation—for pushing the hospital business up against the wall. Downplayed was the promoters’ Fortis assets mismanagement and its role in the sell-out.
The sale will continue to dominate the news cycle as shareholders seek more transparency, even vent their unhappiness at the valuation.