Moneycontrol
Last Updated : May 17, 2018 10:16 PM IST | Source: Moneycontrol.com

IHH extends deadline of offer for Fortis, says will engage with board, shareholders

Its previous offer made towards the end of April expired on May 15.

Viswanath Pilla @viswanath_pilla
 
 
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Malaysia's IHH Healthcare on May 17 extended the deadline for acceptance of its offer for Fortis Healthcare to May 29 after the Manipal-TPG consortium sweetened its offer for the company.

Its previous offer made towards the end of April expired on May 15.

In the earlier offer, IHH proposed to infuse Rs 650 crore into Fortis upfront through a  preferential issue without seeking due diligence, valuing Fortis at Rs 175 per share.

In return for the upfront investment, IHH sought two seats on the Fortis board.

In addition, IHH proposed to inject Rs 3,350 crore at Rs 175 per share following a week’s due diligence.

"We emphasise that we remain strongly committed to participate in Fortis and are therefore very keen to understand the next steps that the Board is considering, in the wake of the modified Manipal Offer," IHH's CEO Tan See Leng said in a statement to stock exchanges.

"If there is indeed a new bid process that the board is proposing to initiate, we would like to participate in such a process and request that we be kept informed of any developments regarding the same," Leng added.

Early this week Manipal-TPG revised the offer valuing Fortis at Rs 180 per share from its previous bid of Rs 160 per share making it the highest bidder. The consortium also said it will invest Rs 2,100 crore upfront as part of the deal.

Last week the Fortis board recommended the Munjal-Burmans bid, that offered to invest Rs 1,800 crore at a weighted average valuation of Rs 172 per share, for shareholder approval.

The decision of Fortis board wasn’t unanimous as three members representing minority shareholders out of the eight-member board voted against the Munjal-Burmans offer.

Fortis' decision sparked controversy as two large institutional shareholders expressed their unhappiness at the valuation and rival bidders, calling foul play, said they directly will reach out to shareholders with counter bids.

Fortis' EGM on May 22 will now decide on a special resolution moved by minority shareholders East Bridge Capital and Jupiter India Fund to remove four members from the board.

"We fully respect any process that is run by the board and reiterate that we wish to engage with the Board and the shareholders of Fortis in identifying a mutually-beneficial and optimal solution," IHH said.
First Published on May 17, 2018 10:13 pm
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