ibusinesslines.com
ibusinesslines.com April 27, 2018


Fortis receives unsolicited bid from IHH Healthcare for Rs 160

16 April 2018, 01:39 | Justin Tyler

A Fortis hospital building

A Fortis hospital building

The regulatory investigations, tightened credit, a lack of liquidity and a smaller board has "adversely impacted decision-making" at Fortis, IHH said in the letter, and asked Fortis to respond to its offer before April 18.

IHH's interest came only a day after TPG-backed Manipal Health Enterprises Pvt sweetened its bid to hive off Fortis's hospital operations and merge them with its own business.

Manipals are offerring Rs 155 per share.

Malaysia's IHH Healthcare Berhad on Thursday offered to buy India's Fortis Healthcare Ltd, sparking a potential three-way takeover battle for the company at a time when interest in Indian healthcare assets is rising. The Fortis Healthcare is said to have only Rs 700 million in liquid cash.

"As part of the proposal, IHH will work with the board and the management of the company to identify optimal financing solutions to enable the company to fulfil its commitments during the challenging phase and stay afloat", the proposal said.

Spelling out the details of their offer, the Munjals and Burmans in a joint letter said, "We are investing an amount of Rs 500 crore based on current business and financial position of the company without doing any due diligence".


According to their offer, the allotment and pricing would be in accordance with SEBI guidelines for preferential shares or ₹ 156 per share, whichever is higher.

Sunil Munjal, the chairman of Hero Enterprise, Anand Burman, the chairman of Dabur Group and Mohit Burman, the managing director of Elephant Capital LLP and director on Dabur's board, have said this infusion will help in addressing urgent financial needs of the company.

As per this latest proposal, out of Rs 1, 250 crore, Rs 5,00 crore will be invested immediately and Rs 750 crore will be post due diligence.

The Fortis sale has been delayed due to the legal cases against its founders, brothers Malvinder and Shivinder Singh, who lost control of the healthcare firm after their stakes plunged to low single digits.

Manipal, seeking to expand its presence beyond southern India, first offered to buy Fortis last month, proposing a deal that would give control of the combined company to Manipal Chief Executive Ranjan Pai and USA buyout firm TPG Capital.



Other News

Trending Now

UNSC rejects Russian resolution on Syria attack
Assad said the strike would increase Syria's resolve to "fight and crush terrorism in every inch" of the country. Thus, this attack looks much more like it was meant only to degrade Syrian chemical weapons themselves.

WhatsApp now allows Android users to download deleted media files
However, with the new feature, you can simply scroll up the chat conversation and download the required media content again. It has made a decision to store all the messages and multimedia content on its server even if it is downloaded by the user.

Returning Jordan Ayew rescues Swansea City vs
Jordan Ayew boosted Swansea's fight for English Premier League survival by grabbing a 1-1 draw against Everton on Saturday.

'Rampage' Wins Weekend Box Office, Narrowly Beating 'Quiet Place'
Rampage made $114.1 million from global markets this weekend, for a total of around $148.6 million. That figure brings the movie's domestic total to about $100 million after 10 days in theaters.

Citizens protest across India over Kathua and Unnao rapes, demand justice
Postmortem report revealed that the girl was kept confined for eight to ten days, tortured and sexually assaulted. Prime Minister Narendra Modi on Friday condemned the rape and gave an assurance that justice would be done.

A Bushfire Still Burning in Sydney's West is Being Treated as Suspicious
On Sunday, more than 500 firefighters in nearly 100 fire trucks, along with 15 aircraft, battled the blaze throughout the day. Westerly winds are expected to pick up again on Monday afternoon but will not be as extreme as conditions at the weekend.

IPL Cricket: Roy inspires Daredevils to extend Indians' misery
Roy-Pant were dominating the Mumbai bowlers with Hardik Pandya, Akila Dananjaya and Mayank Markande being hit all over the park. The debutant Roy, who was later named man of the match for his 59-ball 91, championed Delhi's chase to perfection.