Fortis receives non-binding offer from Kkr-backed firm
NEWDELHI: Fortis Healthcare said it has received a non-binding expression of interest from Kkrbacked Radiant Life Care, making it the fifth bidder for the beleaguered firm.
Radiant Life Care has offered to acquire at least 26% stake in Fortis Healthcare (FHL) at ₹126 per share, excluding its diagnostic business SRL.
“The company has received an unsolicited non-binding expression of interest from Radiant Life Care Pvt. Ltd with a proposal for making investment and/or re-structuring the company subject to certain conditions as mentioned in the offer letter,” Fortis said in a regulatory filing late on Thursday night.
To fulfil immediate cash requirement, Radiant Life Care said it is prepared to purchase FHL’S interest in FMRI, Gurugram, and Fortis Shalimar Bagh in New Delhi.
“Our offer is demerger of hospital businesses from Fortis Healthcare into “Newco”, excluding Fortis’ stake in SRL. All cash open offer to shareholders of Newco at price of ₹165 per share, adjusted for per share value of FHL’S shareholding in SRL, that is ₹39. Net value of ₹126 per share of the Newco,” Radiant Life Care said.
“The aforesaid per share value of SRL is arrived at assuming equity value of 100% of SRL at ₹3,600 crore,” it added. Radiant Life Care said its offer is subject to Radiant being able to acquire 26% of more shares of the Newco via open offer.
“In case Radiant is unable to acquire 26% or more shares of Newco through open offer, the Newco shall do preferential allotment at ₹126 per share to Radiant to enable 26% stake in Newco,” it added.
Radiant Life Care said it will fund and underwrite the acquisition of healthcare assets of RHT Health Trust via rights issue. Yesterday, Fortis Healthcare board approved evaluation of only binding offers and formed an expert committee to evaluate the proposals and make a final recommendation by April 26.
In a separate filing, FHL said the advisory committee constituted to oversee the evaluation process and function as an advisor to the board shall be lead by Deepak Kapoor, Former chairman and CEO of Price Waterhouse Coopers, India, and constitute of Renuka Ramnath, former MD & CEO of ICICI Venture, and Lalit Bhasin, president, Society of Indian Law Firms & Managing Partner, Bhasin & Co., as its members.
Malaysia’s IHH Healthcare Bhd, Manipal Health Enterprises, Burmans and Munjals (jointly) and Chinese firm Fosun Health Holdings are already in the race for buying Fortis.
The troubled healthcare chain had received binding offers from Manipal/tpg consortium, and Munjal and Burman family offices. It had also received non-binding expression of interests from Malaysia’s IHH Healthcare Berhad and Chinese firm Fosun Health Holdings.