IHH SAYS FOR­TIS SIDE STEP­PING IT

Malaysian firm com­plains For­tis con­sid­er­ing only bind­ing of­fers

Financial Chronicle - - FRONT PAGE -

For­tis Health­care on Mon­day said its board is ex­pected to meet this week to look at all el­i­gi­ble op­tions af­ter the com­pany re­ceived three bids from dif­fer­ent in­ter­ested par­ties. Its ri­val Ma­ni­pal Health En­ter­prises had last month of­fered to buy the hos­pi­tal busi­ness of For­tis, which is under in­ves­ti­ga­tion over fi­nan­cial fraud.

FOR­TIS Health­care on Mon­day said its board is ex­pected to meet this week to look at all el­i­gi­ble op­tions af­ter the com­pany re­ceived three bids from in­ter­ested par­ties.

Its ri­val Ma­ni­pal Health En­ter­prises had last month of­fered to buy the hos­pi­tal busi­ness of For­tis, which is under in­ves­ti­ga­tion over fi­nan­cial fraud.

On Mon­day, Malaysia’s IHH Health­care said For­tis de­clined to en­gage with the com­pany re­gard­ing a takeover of­fer, cit­ing bind­ing agree­ments with other par­ties.

IHH, one of Asia’s largest health­care op­er­a­tors, of­fered to buy For­tis last week at a price that val­ues the hos­pi­tals chain at about $1.3 bil­lion — higher than the roughly $1.2 bil­lion val­u­a­tion of­fer made by Ma­ni­pal.

Some of For­tis’s mi­nor­ity share­hold­ers are dis­sat­is­fied with the Ma­ni­pal of­fer, and it is un­clear if the IHH price ap­peals to them.

Amerger with a hos­pi­tal chain such as Ma­ni­pal might make more sense, said an an­a­lyst with a bro­ker­age in Mum­bai, adding that more de­tails of the IHH of­fer were needed.

IHH op­er­ates health­care fa­cil­i­ties across nine coun­tries via a net­work of 49 hos­pi­tals in­clud­ing Mount El­iz­a­beth and Gle­nea­gles in Sin­ga­pore.

Two In­dian in­vestors -Su­nil Mun­jal’s Hero En­ter­prise and the Bur­man Fam­ily Of­fice — of­fered last week to make an in­vest­ment worth Rs 1,250 crore ($191.5 mil­lion) in For­tis.

Shares of For­tis fell about 2 per cent on Mon­day af­ter the an­nounce­ment by IHH and ended 2.8 per cent lower.

IHH on Mon­day said For­tis in­di­cated it was un­able to en­gage due to bind­ing agree­ments with Ma­ni­pal Health En­ter­prises, Ma­ni­pal Global Health Ser­vices and pri­vate eq­uity firm TPG Asia.

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