Fortis Healthcare shares jump nearly 10% after IHH submits fresh bid

By: | Published: July 3, 2018 4:09 PM

The shares of Fortis Healthcare jumped nearly 10 percent after Malaysia’s IHH Healthcare Berhad on Tuesday made a fresh binding offer to the company’s board.

The shares of Fortis Healthcare jumped nearly 10 percent after Malaysia’s IHH Healthcare Berhad on Tuesday made a fresh binding offer to the company’s board.

The shares of Fortis Healthcare jumped nearly 10 percent after Malaysia’s IHH Healthcare Berhad on Tuesday made a fresh binding offer to the company’s board. The offer is valid till July 16, 2018, IHH Healthcare Berhad said in a regulatory filing. “IHH wishes to announce that IHH has on 3 July 2018 issued a letter (“Binding Offer Letter”) to the Board of Fortis setting out a binding offer, which supersedes and replaces the Enhanced Revised Proposal (“Binding Offer”). The Binding Offer Letter represents IHH’s only binding offer,” IHH Healthcare Berhad said.

The Malaysian company also said that it has issued a letter to the board of Fortis on Tuesday “setting out a binding offer, which supersedes and replaces the enhanced revised proposal.”

“In the event IHH does not receive any response from Fortis by no later than 5pm IST on 16 July 2018, the Binding Offer shall be deemed to have been withdrawn. However, there were no details released by the company about the size of the bid.

For the submission of the fresh binding bids, cash-strapped Fortis Healthcare had set July 3 as the deadline. Fortis Healthcare had earlier scrapped its decision to opt for the offer by the Munjal-Burman combine to invest Rs 1,800 crore in the company. Fortis Healthcare shares ended the day at Rs142 up 6.85 percent on BSE.

Meanwhile, Fortis Healthcare Ltd.’s quarterly loss widened as it wrote off, among other things, loans and deposits related to the Singh brothers, its erstwhile promoters.

Fotis, India’s second largest hospital chain, which is evaluating takeover bids, reported a net loss of Rs 932 crore for the quarter ended March compared with a Rs 68-crore loss in the year-ago period, according to its exchange filings. That was largely due an exceptional loss of Rs 833.5 crore the company attributed to write off of goodwill, inter-corporate deposits and advances.

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