Fortis Update: Investors pile up with revised Offers

New Delhi: The race to acquire Fortis healthcare is getting steamier with many of its present bidders revising their offers before the Fortis Healthcare Ltd (FHL) board meets to consider the recommendation by an expert advisory panel formed to finalize evaluation process of only binding offers. The board is scheduled to meet tomorrow

Here is the list of offers for Fortis

Radiant Life Care

Fortis Healthcare Ltd (FHL) said KKR-backed Radiant Life Care has made a binding offer to acquire its Mulund-based hospital for Rs 1,200 crore as part of its revised deal to gain control of the healthcare major.

The company received the revised offer today, FHL said in a filing to BSE.

"In order to provide immediately liquidity to FHL, we would like to make a binding offer to purchase Fortis Mulund hospital without due diligence and as a going concern at an enterprise value of Rs 1,200 crore as the first step," Radiant said in its revised offer.

The transaction would provide an immediate liquidity of Rs 680 crore for FHL, according to the new offer.

About earlier non-binding offer, Radiant had offered to acquire at least 26 percent stake in FHL at Rs 126 per share, excluding its diagnostic business SRL.

Read also: Fortis Update: Radiant makes offer, Fortis forms new panel to decide proposals

IHH Healthcare Berhard

Malaysia’s IHH Healthcare Berhard has also made a binding offer to immediately infuse Rs 650 crore in the company as part of its overall proposal to invest Rs 4,000 crore.

In a regulatory filing, Fortis Healthcare said it has received an unsolicited binding offer from IHH Healthcare with a proposal to invest directly in the company.

In a letter to the board of directors of Fortis, IHH Healthcare Berhad MD and Group CEO Tan See Leng said the binding proposal was for an immediate primary equity infusion of Rs 650 crore in Fortis Healthcare by way of a preferential issue and allotment of equity shares at Rs 160 per share.

In return, IHH has demanded that it be given the right to appoint two directors on the board of Fortis.

The Malaysian firm, however, said the binding offer is subject to it being allowed to do due diligence and receipt of relevant regulatory approvals.

In his letter, Leng further said its non-binding offer would include an investment of Rs 3,350 crore through a subsequent preferential issue and allotment of equity shares subject to satisfactory completion of due diligence at a share price not exceeding Rs 160 apiece.

Earlier, IHH Healthcare had offered to acquire stake in the Indian firm at Rs 160 per share and also upped the ante by proposing to infuse Rs 4,000 crore through a preferential allotment of equity shares at a price not exceeding its offer share price.

Read also: IHH offers Rs 160 per share for Fortis healthcare

Manipal-TPG

According to recent media reports, Manipal-TPG has also submitted a revised offer to acquire Fortis Healthcare Ltd's hospital business and stake in its diagnostics arm.

According to the report, in Manipal-TPG's new offer, the consortium has hiked the premium offered from Rs 1,058 crore to Rs 1,319 crore which is over and above the equity valuation for Fortis Healthcare's hospital business resulting in an equity value of Rs 6,322 crore being attributed to the Fortis Healthcare hospital business, an increase of 4.31% from Manipal-TPG's last offer on April 10.

In return, the group wants to appoint a majority of the directors on the board of SRL and control at least 51% of the voting rights in SRL with Fortis Healthcare. It has also sought limited veto rights in relation to "certain key matters" pertaining to SRL reports ET.

Previously, the Manipal/TPG-led consortium had raised their offer for Fortis to Rs 155 per share by valuing the hospital business higher at Rs 6,061 crore from Rs 5,003 crore in its initial offer on March 27.

Read also: Manipal Health raises offer for Fortis Healthcare- Firm now valued at Rs 6,061 crore

Other Offers

The troubled health care chain had also received binding offers from Munjal and Burman family offices and a non-binding offer from Chinese firm Fosun Health Holdings Ltd.

On April 18, Hero Enterprise Investment Office and Burman Family Office improved their binding offer with a proposal to invest Rs 1,500 crore directly at a valuation of Rs 161.6 per share, from the earlier Rs 1,250 crore. They had stated that their improved offer was valid for five working days.

Read also: Fortis Update: Munjals, Burmans better their offer, BLK promoter likely to bid

Fosun Health Holdings, an arm of Fosun International had proposed a 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).

Read also: Another Suitor in Line for Fortis, this time a Chinese Conglomerate