Mumbai: Following the development of two private equity funds giants -TPG Capital and General Atlantic Llc joining hands together in the race to acquire a controlling stake in Fortis healthcare, reports are now flowing in that the promoters of the Fortis Healthcare, Malvinder Singh and Shivinder Singh are looking at a valuation of Rs 250 per share. Currently, the shares are being traded at the NSE at around Rs 209.80 per share.
Mint reports about the expected valuation adding that the deal may finalize in the coming few weeks. The main contender for the controlling share include TPG and General Atlantic alliance on one side and IHH healthcare on the other.
Medical Dialogues team had earlier reported that 5 companies including KKR and Co. Lp ,Bain Capital, IHH along with TPG capital and General Atlantic had showed interest in Fortis Healthcare acquisition race. With two companies joining hands and two namely, KKR and Bain no longer showing interest, the battle for the stake sale boils down to two major contenders
After the stake sales, the Singh brothers who currently own a 67.5% stake in Fortis Healthcare will continue to be the single largest shareholders but will cede management control to the new investor, reports Mint.
The deal is likely to be close in the next few weeks if the final round of negotiations conclude.
“Both bidders have revised their bids and the discussions are in the range of Rs 250 per share for Fortis alone, and another Rs 2,000 crore for SRL,” said one of the sources informed the daily
With a control premium, the deal could value Fortis at around Rs 12,000 crore. Moreover, SRL could be valued at Rs 4,500-5,000 crore, said the officials. The promoters are working towards demerger of SRL as well.
Medical Dialogues had also reported that in order to reduce some of their debt 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 Daiichi appeal pending with the court, trying to prevent any sale by the brothers till the settlement of its Rs 2600 crore arbitration award.