Race for Fortis: To take on rising competition for Fortis Healthcare with a latest $350 million bid from China’s Fosun, the Munjal-Dabur family have made an improved offer, and Malaysia’s IHH has sought to get back in the race.
Race for Fortis: To take on rising competition for Fortis Healthcare with a latest $350 million bid from China’s Fosun, the Munjal-Dabur family have made an improved offer, and Malaysia’s IHH has sought to get back in the race. Notably, Fortis Healthcare had said yesterday that Fosun International has offered to invest up to $350 million, making the Chinese firm the fourth suitor aiming to tap soaring demand for private healthcare in India. This came within days of IHH Healthcare saying that Fortis expressed ‘inability to engage’ with them, due to binding agreements with Manipal Health Enterprises and party. Notably, IHH had joined the race last week to acquire India’s troubled Fortis, offering higher price than Manipal’s Rs 155 a unit, which valued the company at Rs 6,061 crore. However, according to a Bloomberg report, IHH has asked Fortis for three weeks to complete due diligence before making a potential binding offer. The agency reported unidentified sources as saying. We take a closer look at the key developments.
Burman-Munjal family makes improved offer
According to the latest statement by Fortis Healthcare on BSE, Fortis has received an improved binding offer from Hero and Burman family office. According to the release, the Burmans and the Munjals have made an improved binding offer which is more ‘simple, attractive and faster to implement.’ The duo have sought to invest Rs 1,500 crore directly into Fortis, as compared to their earlier offer of Rs 1,250 crore. Further, out of the total of Rs 1,500 crore, the parties have sought to invest Rs 750 crore upfront, Rs 500 crore via issue of preference shares and Rs 250 crore via warrants in Fortis. The revised offer will remain valid for 5 working days, the company said.
IHH back in the race
According to Bloomberg, IHH has asked Fortis for three weeks to complete due diligence before making a potential binding offer, people aware of the development told the agency. Further, the agency reported that IHH Healthcare bid valued Fortis Healthcare at $1.3 billion. Earlier, to take on an improved offer from TPG-Manipal at Rs 155 per share valuing the hospital business at Rs 6,061 crore, IHH had made a “non-binding expression of interest” and was willing to pay up to Rs 160 per share.