Tpg-manipal combine submits fresh Fortis bid

NEW DELHI: Tpg-backed Manipal Hospital revised its offer to acquire Fortis Healthcare again on Sunday, promising to infuse ₹2,100 crore at ₹160 per share, against an earlier proposal of ₹1,800 crore.

Tpg-manipal used its exclusive agreement with Fortis that gave it the right to revise its proposal within five days after the bidding ends.

Tpg-manipal’s move is triggered by at least two bidders, IHH Healthcare Bhd and a group led by businessman Sunil Munjal, who sweetened their offers for the assets of troubled Fortis Healthcare Ltd ahead of the May 1 deadline for submitting binding offers. The deadline for revision of offer in account of TPG-MANIpal ended on Sunday.

The Fortis board will now meet on May 10 to consider the recommendations of its external advisory committee (EAC), formed to evaluate the binding bids.

In a regulatory filing on Sunday, Manipal offered to subscribe to ₹2,100 crore worth of shares of Fortis via a preferential allotment at ₹160 apiece, for “liquidity needs” like repaying existing loans and to meet working capital requirements.

Manipal proposed merging with Fortis in a deal that would value the latter at ₹8,358 crore. Manipal also proposed to buy stake in SRL Ltd held by private equity firms at a price that values the subsidiary at ₹3,600 crore.