Munjals-Burmans, IHH raise bid for Fortis Healthcare

Malaysia’s IHH Healthcare and Munjals-Burmans (combine) on Tuesday revised upwards their offers for Fortis Healthcare ahead of the deadline set by the board of the hospital-chain for submission of binding bids.

Malaysia’s IHH Healthcare lifted its offer to Rs 175 a share, a 9.4 per cent premium to an earlier proposal. IHH earlier proposed injecting Rs 650 crore immediately into Fortis, and then Rs 3,350 after due diligence.

Sunil Munjal and Anand Burman increased their combined offer to invest in the company to Rs 1,800 crore from Rs 1,500 crore, via a subscription to shares and warrants. They have offered Rs 167 per share and Rs 176 rupees per warrant.

"The company on Tuesday has received an enhanced revised proposal from IHH to invest directly into the company at a per share price of Rs 175 per share," Fortis Healthcare said.

In a letter to the board of directors of Fortis Healthcare, IHH, which had earlier proposed to immediately infuse Rs 650 crore in the Indian firm as part of an overall proposal to invest Rs 4,000 crore, revised its offer upwards at Rs 175 per share.

"The subsequent equity infusion shall be at a price not exceeding Rs 175 per share... For avoidance of doubt, this subsequent equity infusion will be subject to satisfactory completion of the due diligence and execution of mutually acceptable binding definitive documents," IHH said in its letter.

The Malaysian firm said the enhanced revised offer is valid till May 15.

Hero Enterprise Investment Office and the Burman Family Office have also hiked their joint proposal to invest Rs 1,800 crore directly in the company.

Under their revised offer, the Munjals and Burmans proposed to invest Rs 800 crore through a preferential allotment of equity shares at Rs 167 per share.