IHH looks to join race to acquire Fortis Healthcare

The race to acquire Fortis Healthcare is likely to heat up as IHH, Southeast Asia’s largest hospital operator, is rumoured to make a cash offer to the Indian hospital operator. The offer is expected within the next few days.

The new twist comes after Manipal tabled a revised offer to acquire Fortis Healthcare on Tuesday.

Kuala Lumpur-based IHH Healthcare is planning to send a letter to the Fortis board within the next couple of weeks about its plans to bid for the Indian company. IHH is contemplating a cash offer for Fortis, which has a market value of about $1.2 billion, according to a Bloomberg report, citing sources.

It would be the latest twist in the Fortis saga, with SFIO and stock regulator Sebi investigating the company after reports that its founders took at least Rs 500 crore out of the firm without board approval. Brothers Malvinder Singh and Shivinder Singh have resigned from the company and have lost control of their shareholding due to mounting debt.

IHH is currently discussing the potential level of the bid. If the approach is rejected by the Fortis board, IHH will consider taking its offer directly to the Indian company’s shareholders.

Any offer would put IHH in competition with TPG-backed Manipal Health Enterprises. Manipal’s new offer values Fortis at Rs 155 a share, up from Rs 140 earlier, Ranjan Pai, chairman of Manipal Education and Medical Group, said.

Manipal has put its “best foot forward” with the revised bid, said Pai. “I hope it’s a binding bid, good luck to them,” he said of the competing offer.