According to sources, CCI has approved IHH Healthcare’s Rs. 4000 crores acquisition of Fortis through a share subscription agreement.

Post-acquisition, since IHH’s stake in Fortis will exceed 25%, it is required to extend an offer to buy an additional 26% from existing shareholders at a price not less than the one at which the stake is being bought. Its stake in Fortis could be between 31 to 57%, depending on the subscription received for the open offer.

With CCI’s approval, IHH will be able to make an open offer for an additional 26% stake.

The funds from the deal are expected to meet Fortis' short term and long term cash requirements including acquiring assets from S’pore-based Religare Health Trust and providing an exit to private equity investors in SRL.