Radiant Life, IHH revise offer to buy Fortis Healthcare

KKR-backed Radiant Life Care on Tuesday made a revised bid for Fortis Healthcare (FHL) with a binding offer to acquire its Mulund hospital for Rs 1,200 crore and a proposal to acquire stake in hospital business.

This is the second revised offer received by Fortis on Tuesday after Malaysian major IHH made a binding offer to immediately infuse Rs 650 crore in the Indian firm as part of an overall proposal to invest Rs 4,000 crore.

"In order to provide immediately liquidity to FHL, we would like to make a binding offer to purchase Fortis Mulund hospital without due diligence and as a going concern at an enterprise value of Rs 1,200 crore as the first step," Radiant said in its revised offer. The transaction would provide an immediate liquidity of Rs 680 crore for FHL, according to the new offer. About earlier non-binding offer, Radiant had offered to acquire at least 26 per cent stake in FHL at Rs 126 per share, excluding its diagnostic business SRL.

The revised offer of the Malaysian firm came two days ahead of a meeting of Fortis Healthcare board to consider recommendation by an expert advisory panel formed to finalise evaluation process of only binding offers.

IHH had earlier made a non-binding offer to invest Rs 4,000 crore in Fortis at Rs 160 per share. Manipal-TPG combine and Munjals and Burmans were the only two groups which had made binding offers out of total of five suitors in race.

Fortis Healthcare said it has received an "unsolicited binding offer" from IHH Healthcare with a proposal to invest directly into the company.

In a letter to the board of directors of FHL, IHH Healthcare MD and Group CEO Tan See Leng said the binding proposal was for an immediate primary equity infusion of Rs 650 crore in FHL by way of a preferential issue and allotment of equity shares at Rs 160 per share. IHH has also demanded the right to appoint two directors on the board of FHL.

IHH said its binding offer is subject to it being allowed to do due diligence and receipt of relevant regulatory approvals. Leng further said its non-binding offer would include investment of Rs 3,350 crore through a subsequent preferential issue and allotment of equity shares subject to satisfactory completion of due diligence at a share price not exceeding Rs 160 apiece.

Malaysian major IHH made a binding offer to immediately infuse Rs 650 crore in the Indian firm as part of an overall proposal to invest Rs 4,000 cr