Fortis Healthcare Ltd.’s board of directors chose IHH Healthcare Bhd. to take control of India’s second-largest hospital chain, ending a months-long takeover battle as the company wrestles with investigations over financial irregularities.
Malaysia-based IHH’s offer would see 40 billion rupees ($583 million) invested directly in the company through a preferential allotment of shares at 170 rupees a share, according to a statement Friday from Fortis. After an open offer to shareholders, IHH, one of Asia’s largest health-care services company, will own as much as 57 percent of Fortis. The Indian company rejected a competing proposal backed by private-equity firm TPG.