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Fortis shares gain 4% on IHH Healthcare’s counter bid

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Mumbai | Published: April 13, 2018 2:58:40 AM

The Fortis stock rose by 4.17% to end the session at Rs 153.80. According to news reports, IHH sent a letter to the Fortis board on Wednesday saying it may be willing to pay as much as Rs 160 per share, 4% more than Thursday's closing price.

 The stock of Fortis Healthcare rallied after news reports suggested that Malaysia-based IHH Healthcare may make a bid of .3 billion to acquire control of the company. (Reuters)

The stock of Fortis Healthcare rallied after news reports suggested that Malaysia-based IHH Healthcare may make a bid of $1.3 billion to acquire control of the company. The Fortis stock rose by 4.17% to end the session at Rs 153.80. According to news reports, IHH sent a letter to the Fortis board on Wednesday saying it may be willing to pay as much as Rs 160 per share, 4% more than Thursday’s closing price. IHH’s bid comes just a day after Manipal Health Enterprises raised its offer for Fortis Healthcare’s hospital business. Manipal said its revised plan gives Fortis shareholders Rs 155 per share, up from the Rs 140 offered earlier. If the deal with Manipal goes through, the combined entity will become the largest Indian healthcare service provider by revenues. Fortis was in the news recently following the Securities and Exchange Board of India investigating the company for alleged withdrawal of funds from the company by the founders without board approval. Promoters Malvinder Singh and Shivinder Singh have since resigned from the company.

The stock has been trending up since March 27 when the board of Fortis Healthcare approved the demerger and sale of its hospital business to Manipal Hospitals. The stock has risen by 24.6% in the last two weeks. Of the ten analysts who track the stock, seven have a ‘buy’ rating on it, two a ‘hold’ and one a ‘sell’.

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