Fortis battle gets harder with Dabur’s Burmans and Hero’s Munjals joint bid: 3 key things to know

By: | Published: April 13, 2018 9:27 AM

With Hero’s Munjals and Dabur’s Burmans joint bid, the battle for Fortis Healthcare just got harder. Interestingly, the duo have proposed to invest Rs 1,250 crore in the company through the preferential allotment route, according to a statement filed by Fortis on BSE.

Fortis has received an unsolicited, binding joint offer from the Hero Enterprise Investment Office and the Burman Family Office with a proposal to invest Rs 1,250 crore in the company through the preferential allotment route.

With Hero’s Munjals and Dabur’s Burmans joint bid, the battle for Fortis Healthcare just got harder. Interestingly, the duo have proposed to invest Rs 1,250 crore in the company through the preferential allotment route, according to a statement filed by Fortis on BSE. Notably, Malaysia-based IHH Healthcare has also shown interest to bid for Fortis. IHH has made a “non-binding expression of interest” and is reportedly willing to pay up to Rs 160 per share, 4% higher than Thursday’s closing price. Apart from there two parties, TPG backed-Manipal has also revised its offer upwards by 20% in order to woo the minority investors. We take a closer look at the three bids.

Manipal-TPG bid

In an attempt to woo the minority investors, Manipal has raised its bid by 20%, and the latest offer values Fortis’ hospital business at about 21 percent higher to Rs 60.61 billion according to a statement released by Manipal Hospitals released earlier this week. Further, according to the revised terms, the Fortis’ hospital business is valued at around Rs 155 per share. Notably, the swap ratio has also been tweaked in favour of Fortis’ shareholders who will now receive 13.1 shares in the combined entity, as opposed to 10.83 shares earlier.

IHH Healthcare counter bid

IHH Healthcare bid is seen as a counter-bid to better Manipal-TPG’s revised offer. The company has made a “non-binding expression of interest” and is reportedly willing to pay up to Rs 160 per share, 4% higher than Thursday’s closing price.

Burman-Munjal joint bid

With their latest joint big to invest up to Rs 1,250 crore, it now appears to be a tussle between these three entities. According to Forits statement on the BSE, the company has received an unsolicited, binding joint offer from the Hero Enterprise Investment Office and the Burman Family Office with a proposal to invest Rs 1,250 crore in the company through the preferential allotment route. Notably, the total amount of Rs 1,250 crore involves a Rs 500-crore binding offer immediately, followed by Rs 750 crore after completion of due diligence is completed “within three weeks. ”

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