The much-touted deal between Fortis Healthcare Ltd and Malaysia-based IHH group will most likely go through, with 99.69 per cent of votes by shareholders in favour of the deal.

The transaction will enable the IHH group to infuse an initial ₹4,000 crore at ₹170 per share. Also, IHH will control a majority of two-thirds seat on the Fortis’ Board.

According to the disclosure made by Fortis to stock exchanges on Tuesday, 99.99 per cent shareholders also voted to increase the authorised capital in the company and reclassification of promoters of the group, brothers Malvinder and Shivinder Singh, to public shareholders category.

This move will remove them from the status of ‘promoters,’ in the company and bring in IHH subsidiary NTK Pvt Ltd in their place . Regarding the resolution for issuance of equity shares via preferential allotment, while the promoters and promoter group was 100 per cent in favour of preferential allotment, the public institutions which hold the maximum shares, resisted the deal with 11,66,180 votes not in favour of the allotment. However, that proved miniscule, with 33,98,04,515 votes from public institutions favouring it.

FHL has faced numerous challenges like low-occupancy numbers in the current quarter at 62 per cent from last year’s 71 per cent. The company’s ability to bring new talent on board has faced issues, especially recruitment of new doctors in Medical and Surgical Oncology, Orthopaedics, Liver Transplant and Neurology fields.

FHL’s operating revenue for the first quarter FY19 dropped to ₹1,042 crore from last year’s ₹1,156 crore. Average Revenue Per Occupied Bed remained highest in the industry at ₹1.53 crore.

“At the end of the day the number of beds you have filled will drive how the organisation performs. Sixty-two per cent is certainly low, but in July we have come back at 67 per cent and in August we were trending at 68 per cent,” said Bhavdeep Singh, CEO, Fortis Healthcare Ltd.

“Our hospital business has started showing signs of a strong recovery during the current quarter with a significant uptick in occupancy run rate levels now exceeding 69 per cent from 62 per cent in Q1 FY19,” he added.

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