India-based healthcare provider Fortis Healthcare has agreed to sell Fortis Malar Hospital in Chennai to MGM Healthcare for around Rs1.28bn ($15.36m) in cash.

The all-cash deal is awaiting approvals and includes the sale of Fortis Malar Hospital's business operations, land and building assets.

It also covers the hospital's outpatient department and radiology operations, as well as an adjacent land parcel and a parking premise.

The deal is due to close by January next year and is part of Fortis' strategy to streamline its portfolio and focus on key geographic clusters.

The decision to sell the 140-bed Fortis Malar Hospital was prompted by several legacy issues.

MGM Healthcare aims to expand its presence in Chennai through the acquisition, which aligns with its strategy for growth.

Saraf and Partners Law Offices provided legal advisory service to Fortis Healthcare for the deal, while Shardul Amarchand Mangaldas offered legal advice to Fortis Malar Hospitals and Veda Corporate Advisors was the financial advisor.

JSA Advocates & Solicitors offered legal advice to MGM Healthcare.

MGM Healthcare managing director Dr Prashanth Rajagopalan said: “Chennai has a deep emotional connection with Malar Hospital.

“We are determined to restore and advance Malar to its original glory.

“The acquisition of Fortis Malar by MGM is a crucial step in our planned capacity expansion nationwide, allowing us to extend our commitment to providing the best in quality, affordable and personalised healthcare.

“With this acquisition, we would bring our total bed count in Chennai to approximately 800 beds.”

Fortis operates 27 facilities with around 4,500 operational beds in total, specialising in hospitals, diagnostics and day care services.

Earlier this year, the company acquired Medeor Hospital in Manesar for Rs2.25bn.

MGM Healthcare is a quaternary care provider in South India, operating two hospitals with 600 beds and currently developing another.