BITTER PILL
FORTIS Healthcare Ltd has rejected IHH Healthcare Bhd’s takeover offer, citing binding offers from other parties. IHH’s bid has valued the India-based company at US$1.3 billion (RM5 billion).
IHH Healthcare Bhd said yesterday its offer to take over India-based Fortis Healthcare Ltd has been rejected. Fortis had declined to engage with it regarding the takeover offer, citing binding agreements with other suitors, said IHH in a filing to Bursa Malaysia.
“IHH had on April 11 issued a strictly non-binding letter to the board of Fortis Healthcare Ltd, expressing IHH’s interest to participate in Fortis and its affiliates in a suitable manner.
“In response, the board of Fortis has indicated its inability to engage with IHH, as Fortis has entered into binding agreements with Manipal Health Enterprises Pte Ltd, Manipal Global Health Services and TPG Asia.”
IHH, one of Asia’s largest healthcare operators, had offered to buy Fortis last week at a price that valued the hospitals chain at about US$1.3 billion (RM5.05 billion).
This was higher than the roughly US$1.2 billion valuation from Indian rival Manipal.
Reuters reported that some of Fortis’ minority shareholders were dissatisfied with the Manipal offer, and it was unclear if the IHH price appealed to them.
Reuters said Fortis, which is under investigation over financial fraud, had seen interest from multiple parties since Manipal’ soffer last month.
Two Indian investors, Sunil Munjal’s Hero Enterprise and the Burman Family Office, offered last week to make an investment worth 12.5 billion rupees (RM741.86 million).
“Given the ever-changing competitive dynamics, IHH reserves the right to pursue all necessary steps to ensure that the shareholders of Fortis are provided with the opportunity to realise the value inherent in our proposal,” IHH had said in a letter last week.