IHH extends validity of offer to buy stake in India’s Fortis
NEW DELHI: Malaysia’s IHH Healthcare Bhd has extended the validity of its revised offer to acquire a stake in Indian hospital chain, Fortis.
IHH told the Fortis Healthcare Ltd board in a letter on Thursday that its enhanced revised proposal, submitted on May 1 and lapsed on May 15, will remain valid until May 29.
The move puts the Malaysian company back in the race to buy a stake in Fortis, which last week announced that its board had accepted the investment proposal of the Indian consortium of Hero Enterprise Investment Office and Burman Family Office.
Others bidding for cash-s trapped Fortis included private equity group KKR-backed Radiant Life Care, a consortium of Manipal Hospitals and buyout firm TPG Capital, and China’s Fosun International.
Manipal and TPG sweetened their bid on Monday, offering 180 rupees per share, which would value Fortis at 94.03 billion rupees
If there is indeed a new bid process that the board is proposing to initiate, we would like to participate in such a process and request that we be kept informed of any developments regarding the same. IHH Healthcare
(US$1.39 billion).
The Hero-Burman proposal, pending shareholder approval, proposed to invest 18 billion rupees (US$267 million), valuing the hospital chain at 90 billion rupees.
IHH in its Thursday letter said it is keen to understand the next steps the board is considering in the wake of the modified Manipal offer.
“If there is indeed a new bid process that the board is proposing to initiate, we would like to participate in such a process and request that we be kept informed of any developments regarding the same.
“We fully respect any process that is run by the board and reiterate that we wish to engage with it and the shareholders of Fortis in identifying a mutuallybeneficial and optimal solution,” IHH Healthcare Managing Director and chief executive officer, Tan See Leng said.
The Malaysian company, however, made it clear that its enhanced revised proposal must be accepted in its entirety and cannot be accepted together or in conjunction with any other investment proposal from any third party.
IHH in its revised offer on May 1 proposed to make an immediate equity infusion at Rs 175 per share and a subsequent injection at a per share price not exceeding Rs 175.