New Delhi : Malaysia’s IHH Healthcare has joined the race to acquire India’s troubled Fortis Healthcare, offering to acquire shares at up to Rs 160 apiece, higher than Manipal Health Enterprises’ offer of Rs 155 per unit by valuing the company at Rs 6,061 crore.
On Thursday, Sunil Kant Munjal-led Hero Enterprise Investment Office and Burman Family Office had also offered to invest Rs 1,250 crore in the healthcare chain at up to Rs 156 per share.
Manipal Health Enterprises had raised its offer for Fortis Healthcare to Rs 155 per share by valuing the hospital business higher at Rs 6,061 crore, from an initial total equity valuation of Rs 5,003 crore. In a regulatory filing on Friday, Fortis Healthcare (FHL) said it has received an unsolicited non-binding expression of interest from IHH Healthcare Berhad for possible due diligence and participation with the company.
The company also shared a letter sent to the board by the Malaysian healthcare major, which offered up to Rs 160 per share of Fortis.
In the letter to the directors of FHL, IHH Healthcare Berhard Managing Director and Group CEO Tan See Leng expressed his company’s “strong interest in Fortis Healthcare and its affiliates in a suitable manner”.
“As on date, based on publicly-available information and our preliminary analysis, we believe a price of up to Rs 160 per Fortis share to be appropriate, subject to satisfactory completion of a due diligence,” he said.
While seeking a due diligence of Fortis on its financial position of up to December 2017, Leng said Fortis’ recent agreement with Manipal Healthcare and TPG Capital for a transaction involved various complex steps over a prolonged period. “We believe that we could provide an alternative transaction construct, which in our view, would offer a better option to the company’s shareholders at an attractive valuation,” he added.
Stressing that its offer is non-binding, IHH asked the Fortis board to respond on its offer by 1700 hours, April 18. Leng also hinted at the possibility of IHH making revised counter offer if the other suitors were to revise their bids.
