Days after Manipal Hospital and private equity firm TPG Capital Management revised their bids on for the Fortis Healthcare, Malaysian firm IHH Healthcare sought to get back into the race. The company on Thursday said that said it has extended the acceptance period of its enhanced revised proposal for Fortis Healthcare to May 29.
IHH Healthcare in a letter to the Fortis Board said that it remains “strongly committed” to participate in the bid for Fortis. Last week, Fortis was reported to be planning to accept the revised offer by Munjal-Burman. The combined offer was an investment of Rs 18 billion ($266.5 million), valuing Fortis at 90 billion rupees.
“If there is indeed a new bid process that the Board is proposing to initiate, we would like to participate in such a process and request that we be kept informed of any developments regarding the same,” PTI quoted IHH Healthcare MD and CEO Tan See Leng as saying in the letter.
On May 1, IHH Healthcare had sweetened its deal to directly invest in Fortis at Rs 175 per share on May 1. It had initially made a non-binding offer to invest in Fortis at Rs 160 per share. The company had also revised it to 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 on April 24.
At least five parties were interested in Fortis Healthcare. However, the company’s board decided to evaluate only binding offers. Malaysias IHH Healthcare Berhad, Munjal-Burmans, Manipal-TPG and KKR-backed Radiant Life Care have put their bids.