Fortis Healthcare shares rose nearly 4 percent intraday Tuesday as Manipal-TPG combine sweetened their bid to buy the company.
Fortis Healthcare shares rose nearly 4 percent intraday Tuesday as Manipal-TPG combine sweetened their bid to buy the company. India’s Manipal Hospital and private equity firm TPG Capital Management on Monday revised their bid on Monday to buy Fortis Healthcare Ltd, just days after the Fortis board said it favoured a rival offer to the dismay of many shareholders. The shares of Fortis climbed as much as 4 percent to Rs 154.45 today. At 12:47 hours Fortis Healthcare was quoting at Rs 151.95, up Rs 3.20, or 2.15 percent on the BSE.
On last Thursday, Fortis Healthcare, planned to accept the revised offer by Munjal-Burman combine that offered investment of Rs 18 billion ($266.5 million), valuing Fortis at 90 billion rupees, subject to shareholder approval. Post this decision by the board, shares in the cash-strapped hospital operator down almost 5 percent as it drew ire of investors.
Reuters reported citing an unidentified analyst that it’s not clear nod of the shareholders will be received to the offer from Hero Enterprise Investment Office and Burman Family Office. In a statement on Monday Fortis said that it would offer Fortis 180 rupees a share, valuing the company at 94.03 billion rupees ($1.39 billion).
Urging the Fortis’ board of directors to refer the offer to its shareholders, Manipal said in a statement that the new offer is much better than any other offer or bid that Fortis has received to date, including the one by Hero and Burman.
“This is a real offer,” a major shareholder in Fortis told Reuters. “This is getting in the territory of a fair bid.”