IHH submits ‘improved offer’ to invest directly in Fortis Healthcare

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Mumbai, April 24 (IANS) Fortis Healthcare on Tuesday said that it has received an “improved offer” from IHH Healthcare Berhad to directly invest in the company.

According to a BSE filing, the binding offer, without the due diligence condition from IHH, entails an immediate investment of Rs 650 crore into the company “… by way of a preferential issue and allotment of equity shares at a price of Rs 160 per share for which IHH would be given the right to appoint two directors on board”, IHH Healthcare Berhad’S Managing Director and Group CEO Tan See Leng said in a letter to the Fortis board.

However, IHH has asked for immediate access to carry out legal and finanacial due diligence of the company after its binding proposal is accepted. The non-binding aspect of the overall proposal is to invest Rs 3,350 crore with due diligence and other conditions.

The development comes a day after the company said that Hero Enterprise Investment Office and the Burman Family Office have extended the validity of their “improved binding offer” till May 4, 2018.

On April 19, Sunil Kant Munjal of Hero Enterprise as well as Anand Burman and Mohit Burman of the Burman family approached the Board of Fortis Healthcare with a binding offer to invest Rs 1,500 crore directly in the company.

Last week, Fortis Healthcare disclosed that it has received “an unsolicited non-binding expression of interest (EoI)” from KKR-backed Radiant Life Care with “a proposal for making investment and or re-structuring the company subject to certain conditions as mentioned in the offer letter”.

As per an earlier BSE filing, Radiant Life Care has made an offer to buy a 26 per cent stake in the company at a price of Rs 126 per share, excluding the SRL Diagnostics’ business.

Besides Radiant, Fortis Healthcare has received “an unsolicited non-binding” EoI from Fosun Health Holdings for a possible due diligence.

Fosun Health Holdings has made an offer of a “primary infusion at a price up to Rs 156 per share, subject to due diligence to be completed within three weeks, up to a total investment of $350 million” including a preliminary investment of up to Rs 100 crore.

However, Fortis Healthcare on March 27 had announced plans to demerge its hospitals business (Fortis Hospitals) into Manipal Hospital Enterprises Private Ltd (Manipal Hospitals).

The plan envisages the sale of the company’s 20 per cent stake in SRL Ltd to Manipal Hospitals.

On last Thursday, Fortis Healthcare decided to constitute an “expert advisory committee” to evaluate all binding proposals for fund infusion. The panel is led by Deepak Kapoor, Former Chairman and CEO of Price Waterhouse Coopers, India and has been “requested to provide a report of its recommendation to the Board, by April 26, 2018”.

The company has named Renuka Ramnath and Lalit Bhasin as members of an “expert advisory committee”. Ramnath is a former MD and CEO of ICICI Venture and Bhasin, President, Society of Indian Law Firms and Managing Partner, Bhasin & Co.

The panel is likely to meet by April 25 to decide on the merger or buy offers.



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