IHH Healthcare proposes new binding offer for India’s Fortis

PETALING JAYA: IHH Healthcare Bhd has launched a new offer for India’s muchcoveted Fortis Healthcare Ltd after a fresh bidding process was initiated last Friday.

“IHH has on July 3 issued a letter to the board of Fortis setting out a binding offer, which supersedes and replaces the enhanced revised proposal,” according to IHH’s filing with the stock exchange. This is IHH’s only binding offer. IHH is one of the invited bidders for the new round of bidding for Fortis and the results will be made known by 5pm on July 16.

The binding offer will be deemed to have been withdrawn if IHH does not receive any response from Fortis after the stated period.

Besides IHH, the consortium of Hero Enterprise Investment Office and Burman Family Office, Fosun International Ltd and Manipal Hospitals Enterprises are the bidders for Fortis.

IHH had planned to invest up to 40 billion rupees (RM2.36 billion) through a preferential allotment of equity shares at a price not exceeding 160 rupees per share in Fortis after its bid was turned down in April.

IHH said legal obligations and agreement between IHH and Fortis will be created only after the Fortis board approves the preferential allotment in terms of the share subscription agreement to be executed between the two parties.

“IHH will make appropriate announcements to Bursa Securities in a timely manner in accordance with the Main Market Listing Requirements of Bursa Securities should there be any further material development on this matter.”

IHH advised its shareholders to exercise caution and seek appropriate independent advice when dealing in its shares.

On Bursa Malaysia yesterday, IHH was unchanged at RM6 on volume of 3.54 million shares.