IHH Healthcare to divest stake in Kolkata's Apollo Gleneagles Hospital

This is to comply with competition laws.

After winning its $1.1 billion bid for the assets of Fortis Healthcare, Malaysia's IHH Healthcare is allegedly now looking to divest its 50% stake in Kolkata's Apollo Gleneagles Hospital.

The hospital is a joint venture between Apollo Hospitals and Parkway Pantai, a subsidiary of IHH Healthcare. Under a non-compete agreement, any partner who purchases a stake in a rival hospital will have to divest their stake to the other partner, the Economic Times reports.

"Adding Fortis Healthcare to the IHH family signifies a transformational growth opportunity for us in one of the world’s fastest growing markets," said IHH Managing Director and CEO, Dr Tan See Leng in a statement released with the Group's second-quarter financial results.

"We are heartened by the resounding mandate from Fortis shareholders at the recent shareholders’ meeting, which speaks to their trust in our ability to drive performance at Fortis while addressing its immediate funding needs," he added.