Manipal Health Enterprises is set to acquire Fortis Healthcare for Rs6,500cr, according to the media news. The deal is likely to be formalized this week. The Abu Dhabi-based VPS Healthcare and IHH of Malaysia are also interested in the troubled healthcare chain.

Manipal is interested in operating the hospital chain, while TPG will be investing through the acquisition. If acquired by Manipal, the resultant entity Fortis Healthcare and Manipal Health Enterprises will become India's largest medical services group.

Fortis has recently reported the Q2 and Q3 results in which it reported losses for both the quarters. The company has indicated that it will hire an external legal firm to perform an investigation into alleged fund siphoning by the firm's promoters.

The company is being investigated by SEBI, Registrar of companies (RoC) and Serious Fraud Investigation Office (SFIO) due to the allegations related to accounting irregularities and fund siphoning. Its auditor has also red-flagged the company over the fund transfer and questioned the recoverability of the ICDs. The company is also looking to raise funds (Rs5,000cr) to realign its structure with RHT and to strengthen its future performance.

Fortis owns and operates over 55 healthcare facilities, diagnostics Chain (SRL) and day care specialty facilities across the country.