5 Companies in the run to Aquire Fortis Healthcare
Mumbai: After seeing four major investment enterprises in the race of acquiring Fortis' majority stake, now another private equity fund- General Atlantic LLC is reported to have shown interest in the Fortis Healthcare Limited.
Mint reports that two people aware of the development informed regarding the same on the conditions of anonymity. Moreover, Mint reports that the deal could value Fortis, India’s second-largest hospital operator, at around $1.6 billion (Rs 10,600 crore) or Rs 200-210 a share.
Earlier, three US funds KKR and Co. Lp, TPG Capital ,Bain Capital, IHH Healthcare were reported to be in talks to buy 26% primary stake in Fortis Healthcare from the Singh brothers—Shivinder Singh and Malvinder Singh.
Medical Dialogues team had earlier reported that KKR & Co, a Global private equity fund , specializing in leveraged buyouts in preliminary talks with the Singh brothers, Shivinder and Malvinder Singh to acquire the controlling stake in the leading hospital chain, Fortis Healthcare.
Medical Dialogues team also reported that TPG Capital, an American investment company proposed a non-binding offer of Rs 3000 crores to Fortis Healthcare.
It is reported that the Singh brothers are in the process of selling various businesses to reduce the group’s debt, which stood at Rs 4,700 crore as of 31 March 2016, up from Rs. 3,831 crore in June 2015.
In order to reduced some of their burden, the Singh brothers earlier tried to sell some of the stake but Delhi High Court directed the two brother to seek the permission of the Delhi High Court before to sale of their assets. This was in light of the Daiichii appeal pending with the court, trying to prevent any sale by the brothers till the settlement of its Rs 2600 crore arbitration award
“Healthcare had been a key sector for private equity funds over the last three to four years. A number of hospital chains have seen multiple rounds of funding already - as these assets mature, there would be interest from corporate buyers as well as consolidation opportunities for the investors,” said Sanjeev Krishan, transaction services and private equity leader at advisory firm PwC India, reports Mint
General Atlantic is an American worldwide growth equity firm providing capital and strategic support for growth companies. As of June 30, 2016, General Atlantic has approximately $19.6 billion in assets under management and more than 100 investment professionals based in New York City, Greenwich, Palo Alto, Sao Paulo, London, Munich, Amsterdam, Beijing, Hong Kong, Mumbai and Singapore.