Mumbai: Fortis Healthcare Ltd will acquire the entire asset portfolio of its Singapore listed business trust - RHT Health Trust (RHT) - for an enterprise value of Rs 4,650 crore.

After the deal, the entire Indian assets of RHT will be consolidated into Fortis. The Fortis board approved the deal on Wednesday.

In a statement, Fortis said it had signed a term sheet with the trustee manager of RHT and entered into an exclusivity arrangement for the acquisition of RHT's entities in India.

The transaction will see it acquiring the subsidiaries of RHT, which owns clinics and hospitals in India.

The company added that the transaction included Rs 1,152 crore of debt which will be used to repay RHT's debt.

"This restructuring is a significant initiative and will integrate RHT's entire India-based asset portfolio into Fortis while also improving the overall financial health of the business," Fortis Healthcare chief executive officer Bhavdeep Singh said.

"The transaction will be funded by Fortis with a combination of equity, quasi-equity and/or debt. Fortis has an enabling resolution in place to raise capital for up to Rs 5,000 crore," Singh added.

RHT is a registered business trust listed on the Main Board of the Singapore Exchange Securities Trading Ltd (SGX-ST).

Fortis is a controlling unit holder with an indirect interest of 29.76 per cent in RHT.

The proceeds raised from the listing of RHT in October 2012 on the Singapore wexchange were used by Fortis to de-leverage its balance sheet.

Fortis had also entered into hospital and medical services agreements with entities held by the trust under which Fortis paid service fees to these entities.

The company disclosed that for 2017-18, the annual net cumulative service fees (on the basis of the net fees paid in the first quarter) to be paid by Fortis to RHT are estimated to be around Rs 270 crore.

Fortis now expects that the proposed transaction will enhance the value for all its stakeholders.

"Upon completion of the securities acquisition, the service fees that Fortis was paying will be completely eliminated, thereby improving significantly its operating profitability-EBITDA and cash flows. With Fortis's completion of proposed current transaction the cumulative expected incremental positive impact on EBITDA would be around Rs 270 crore," Fortis added.

The stock market gave a thumbs-up to the transaction, with the shares of Fortis zooming around 8 per cent to end at Rs 140.45 on the Bombay Stock Exchange.