Who will win Fortis slugfest? Ahead of deadline, Malaysia’s IHH enhances bid

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Published: May 1, 2018 11:56:00 AM

Fortis battle: Just a few hours before the deadline for submitting binding bids to pick up the assets of Fortis Healthcare, Malaysia’s IHH has submitted a revised enhanced proposal to invest directly into the company.

IHH has submitted an enhanced bid to invest directly into the equity of Fortis Healthcare at Rs 175 per share.

Fortis battle: Just a few hours before the deadline for submitting binding bids to pick up the assets of Fortis Healthcare, Malaysia’s IHH has submitted a revised enhanced proposal to invest directly into the company. “It is hereby informed that the Company today i.e. May 1, 2018, has received an Enhanced Revised Proposal, as attached herewith, from IHH to invest directly into the Company at a per share price of INR 175,” Fortis Healthcare said in a statement. This compares with Rs 160 per share earlier.

After a lot of back and forth, Malaysia’s IHH had submitted a binding offer to infuse Rs 650 crore in the Indian firm as part of an overall proposal to invest Rs 4,000 crore. IHH had initially made a “non-binding expression of interest” and was willing to pay up to Rs 160 per share. In IHHs assessment, Fortis would need an equity infusion of around Rs 400 crore for working capital and buying the asset portfolio of RHT Health Trust.

Fortis Healthcare had earlier said that the EAC (expert advisory committee) will evaluate all binding bids received by the company till forenoon of May 1. Further,  the healthcare company announced that 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. Reacting to the development, the Burmans and Munjals questioned the deadline extension and also called for a level playing field. “With regard to Fortis, we had assumed that the final bids have been submitted and only review to choose the best offer was pending. We were a bit surprised to learn that everyone has one more chance to bid/re-bid,” Sunil Munjal said in a statement on Sunday.

Fortis now has three other binding bids to consider from from KKR-backed Radiant Life Care, Manipal/TPG consortium and Munjal and Burman family offices. PE giant KKR backed Radiant Life Care has submitted a binding offer to pick up the healthcare chain’s Mulund hospital in Mumbai for an enterprise value of Rs 1,200 crore. One of the earliest contenders for the valued asset, Manipal Health Enterprises has raised its offer for Fortis Healthcare by valuing its hospital business higher at Rs 6,322 crore.

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