Fortis receives revised offer from Malaysia's IHH at Rs 175 per share

Fortis Healthcare has already received binding offers from four entities - KKR-backed Radiant Life Care, IHH Healthcare, Manipal/TPG consortium, and Munjal and Burman family offices.

Ahead of the deadline set by Fortis' board to review all binding offers received till Tuesday afternoon, Malaysia's IHH Healthcare has again revised its proposal and offered to invest directly into the company.

"The company today has received an enhanced revised proposal from IHH to invest directly into the company at a per share price of Rs 175 per share," Fortis Healthcare said in a regulatory filing.

Fortis Healthcare has already received binding offers from four entities - KKR-backed Radiant Life Care, IHH Healthcare, Manipal/TPG consortium, and Munjal and Burman family offices.

"We now wish to reiterate our seriousness and commitment to an investment in the company by enhancing the revised IHH proposal," IHH said in a letter to the board of directors of Fortis.

As per the enhanced offer "immediate equity infusion shall be at a per share price of Rs 175. The subsequent equity infusion shall be at a price not exceeding Rs 175 per share".

"For avoidance of doubt, this subsequent equity infusion will be subject to satisfactory completion of the due diligence and execution of mutually acceptable binding definitive documents," it added.

IHH said the enhanced revised offer is valid till May 15.

Last week, Fortis Healthcare (FHL) said its board will meet on May 10 to take a decision on the binding bids for the company as recommended by the expert advisory committee (EAC).

The committee will evaluate all binding bids received by the company from any party except Manipal-TPG consortium till 12 noon on May 1.

The board has decided that the EAC will consist of two members - Deepak Kapoor and Lalit Bhasin, it added.

The board, on May 10, will meet to consider the recommendations of the EAC.

It continues to be advised by Cyril Amarchand Mangaldas as legal advisor and Standard Chartered Bank as the financial advisor.

Fortis' board has instructed the management to appoint a second independent financial advisor to assist and advise the board with respect to the bids.

Manipal Health Enterprises again revised its offer for Fortis Healthcare on April 25, raising the value of the hospitals business to Rs 6,322 crore.

IHH Healthcare had also revised its proposal and made a binding offer to immediately infuse Rs 650 crore by way of a preferential issue and allotment of equity shares at Rs 160 per share in FHL as part of an overall proposal to invest Rs 4,000 crore.

KKR-backed Radiant Life Care also made a revised bid for FHL with a binding offer to acquire its Mulund hospital for an enterprise value of Rs 1,200 crore.

Besides, FHL has received a binding offer from Hero Enterprise Investment Office and Burman Family Office.

Group entities of Hero Enterprise Investment Office led by Sunil Kant Munjal and the Burman family of the Dabur Group currently hold around 3 per cent stake in the healthcare chain.

FHL had also received an unsolicited non-binding expression of interest from Fosun Health Holdings, an arm of Fosun International, with a proposal of primary infusion at a price up to Rs 156 per share up to a total investment of USD 350 million (over Rs 2,295 crore).

Photograph: Ajay Verma/Reuters