Fortis Update: 2 Bidders Raise Offers to Rs 175, Rs 176 per share

New Delhi: The race to acquire Fortis Healthcare has heated up with two suiters raising their offer prices for the company on the last day of the submission of the bids. On Tuesday, Fortis healthcare got a revised offer from IHH Healthcare and Munjal and Burman family offices.

The Munjals and Burmans joint bid was increased up to Rs 176 per share, while the IHH Healthcare raised its price to Rs 175 per share. Each of the bids is valid till May 15, 2018.

Munjal and Burman Family Offices

Hero Enterprise Investment Office and the Burman Family Office on Tuesday hiked its joint proposal to invest Rs 1,800 crore directly in Fortis Healthcare (FHL).

Hero Enterprise Investment Office and Burman Family Office, in an improved offer letter, have proposed to invest Rs 800 crore by allotment of equity shares through a preferential issue at Rs 167 per share or as per Sebi ICDR guidelines, which is higher, Fortis Healthcare said in a BSE filing.

Further, the Munjals and Burmans offered to invest another Rs 1,000 crore via preferential issue of warrants priced at Rs 176 per share or as per Sebi ICDR guidelines, which is higher, it added.

IHH Healthcare

Malaysia's IHH Healthcare has again revised its proposal and offered to invest directly in the company.

"The company has received an enhanced revised proposal from IHH to invest directly into the company at a per share price of Rs 175 per share," Fortis Healthcare said in a regulatory filing.

"We now wish to reiterate our seriousness and commitment to an investment in the company by enhancing the revised IHH proposal," IHH said in a letter to the board of directors of Fortis.

As per the enhanced offer "immediate equity infusion shall be at a per share price of Rs 175. The subsequent equity infusion shall be at a price not exceeding Rs 175 per share".

"For the avoidance of doubt, this subsequent equity infusion will be subject to satisfactory completion of the due diligence and execution of mutually acceptable binding definitive documents," it added.

IHH said the enhanced revised offer is valid till May 15, 2018.

Fortis Healthcare has already received binding offers from four entities - KKR-backed Radiant Life Care, IHH Healthcare, Manipal/TPG consortium, and Munjal and Burman family offices.

Last week, Fortis Healthcare (FHL) said 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 (EAC).

Read also: Fortis board to meet on May 10 to decide on binding bids

The board has decided that the EAC will consist of two members - Deepak Kapoor and Lalit Bhasin, it added.

The board, on May 10, will meet to consider the recommendations of the EAC. It continues to be advised by Cyril Amarchand Mangaldas as legal advisor and Standard Chartered Bank as the financial advisor.

Fortis' board has instructed the management to appoint a second independent financial advisor to assist and advise the board with respect to the bids.

The bidding window for Fortis closed on Tuesday at 12 pm.

Manipal Health Enterprises again revised its offer for Fortis Healthcare on April 25, raising the value of the hospitals business to Rs 6,322 crore.

IHH Healthcare had also revised its proposal and made a binding offer to immediately infuse Rs 650 crore by way of a preferential issue and allotment of equity shares at Rs 160 per share in FHL as part of an overall proposal to invest Rs 4,000 crore.

KKR-backed Radiant Life Care also made a revised bid for FHL with a binding offer to acquire its Mulund hospital for an enterprise value of Rs 1,200 crore.

Besides, FHL has received a binding offer from Hero Enterprise Investment Office and Burman Family Office. Group entities of Hero Enterprise Investment Office led by Sunil Kant Munjal and the Burman family of the Dabur Group currently hold around 3 percent stake in the healthcare chain.

Read also: Fortis Update: Investors pile up with revised Offers

FHL had also received an unsolicited non-binding expression of interest from Fosun Health Holdings, an arm of Fosun International, with a proposal of primary infusion at a price up to Rs 156 per share up to a total investment of USD 350 million (over Rs 2,295 crore).