Indian Pharmaceutical major Wockhardt has been working out plans to sell two-three of the 12 hospitals promoted by Chairman Habil Khorakiwala to ease debt burden worth over Rs 3,400 crore.

The company has also tried to sell shares in hospital chain to arrange funds. However, the plans did not materialize as the investors were interested to acquire majority stake instead of minority stake in the hospital chain.

The pharmaceutical company is said to be in talks with hospital chain Fortis Health care promoted by former Ranbaxy owners Malvinder Mohan Singh and the Shivinder Mohan Singh to sell two or three hospitals located in Mumbai and Banglore. Wockhardt has been demanding Rs 700-900 crore for the hospitals but investors wants revision of valuation, as per sources.

Meanwhile, Sudarshan Majumdar, Marketing Director and official spokesperson for Fortis Healthcare has declined to comment over the matter. Fortis Healthcare also denied reports of proposed acquisition in a filing before the Bombay stock Exchange on Friday.

Wockhardt has already received shareholder’s nod to sell stake in its animal health care division. However, the firm, undertaking re-structuring plans, is unlikely to arrange sufficient funds from the Rs 100 crore animal divisions.