IHH Healthcare, Manipal-TPG submit fresh bids for Fortis

Fortis Healthcare  | In the September quarter, Rakesh Junjhunwala held a 2.65 percent holding in the stock, and FIIs have increased its stake to 41.04 percent from 40.98 percent in the June quarter. In FY21 so far the stock price has risen 0 percent to Rs 125.70 as on October 26.

IHH Healthcare and Manipal-TPG have made fresh binding offers to the board of Fortis Healthcare, with the deadline for submission ending Tuesday.

It is yet not clear if the Munjal-Burmans consortium has put in a bid. Their spokesperson hasn't confirmed till now.

IHH, the Malaysian healthcare provider, said its binding offer "supersedes and replaces" its earlier enhanced revised proposal. But it did not disclose valuation details.

"Legal obligations and agreement between IHH and Fortis will be created only after the board of Fortis approves the preferential allotment in terms of the share subscription agreement to be executed between Fortis and IHH or the nominee of IHH," IHH said in a statement to stock exchanges.

IHH said its bid will be valid till 5pm of July 16, and will be deemed thereafter to have been withdrawn.

The Malaysian healthcare provider, backed by the southeast Asian country’s sovereign fund Khazanah, had last time made an offer to invest Rs 4,000 crore valuing the company at Rs 175 per share. Out of Rs 4,000 crore, it proposed to invest Rs 650 crore upfront without due diligence.

The Manipal-TPG consortium has also confirmed submitting bids for Fortis Healthcare.

Moneycontrol learned from a reliable source that the valuation offered for Fortis may not be the same.

The last time, Manipal-TPG valued Fortis at Rs 180 per share, making it the highest bidder. The consortium also said it will invest Rs 2,100 crore upfront as part of the deal.

Munjal-Burmans had earlier offered to invest Rs 1,800 crore in Fortis Healthcare at weighted average valuation of Rs 175 per share - through a combination of preferential equity and warrants allotment.

Moneycontrol couldn't verify whether Radiant Life Care has submitted its bid or not.

Last month, beleaguered healthcare provider Fortis had extended the deadline for submitting binding bids due to delay in the release of audited financial results. That was after the hospital chain initiated a fresh bidding process following a complete revamp of its board of directors.

The board has shortlisted four suitors — Munjal-Burmans, Manipal-TPG, IHH and Radiant Life Care — to participate in the bidding process.

To discourage non-serious bidders, the Fortis board put conditions like minimum investment of Rs 1,500 crore by way of preferential allotment and sought detailed funding plan for the acquisition of RHT Health Trust (RHT) with long-stop date or last date by which something must be done.​

RHT is a separately listed Singapore-based trust that holds Fortis’s real estate assets like hospitals.

​Shares of Fortis rose 6.85 percent to close at Rs 142 on BSE, the benchmark Sensex gained 0.32 percent to end 35,378.60 points.