TPG-Backed Manipal Revises Bid for Fortis

(Bloomberg Report)- Fortis Healthcare Ltd. received a revised takeover offer from its first suitor, an Indian company backed by private equity firm TPG, ahead of a board meeting to decide a winner in the bidding war for the country’s second-largest hospital chain.

Fortis has since drawn international bidders intent on securing a place in one of the most under-served health-care markets in the world. India has about half a hospital bed for every thousand people, according to the Organization for Economic Cooperation and Development, even as faster growth than many other large economies increases patients’ ability to pay for better health care.

Manipal Health has offered to buy the stake held by private equity firms in SRL Ltd. at a price that values the Fortis unit at 36 billion rupees, subject to an agreement with the holders.

Fortis has also drawn offers from IHH Healthcare Bhd., Asia’s most valuable hospital operator, KKR & Co.-backed Radiant Life Care Pvt., Chinese conglomerate Fosun International Ltd. and a joint bid from an alliance of two Indian business families. Fortis has appointed Arpwood Capital to advise it on the offers.

The offers range from about 156 rupees per share from Fosun to IHH’s 175 rupees apiece. Each proposal also varies in structure. IHH has proposed making an immediate equity investment, and putting in more after completing due diligence. Fortis has said it will only examine binding bids, and Fosun’s is the only one with no binding elements.

Meanwhile, Jupiter India Fund and East Bridge Capital Master Fund, which own a combined 12.04 percent of Fortis, have put forward a motion to remove four Fortis board members and replace them with three others. While the three were inducted into the Fortis board, the four they sought to remove remain.