For­tis board de­clines to en­gage on takeover of­fer

Viet Nam News - - MARKETS -

MUM­BAI — Malaysia’s IHH Health­care Bhd said yes­ter­day In­dia’s For­tis Health­care Ltd de­clined to en­gage with the com­pany re­gard­ing a takeover of­fer, cit­ing bind­ing agree­ments with other par­ties.

IHH, one of Asia’s largest health­care op­er­a­tors, of­fered to buy For­tis last week at a price that val­ues the hos­pi­tals chain at about US$1.3 bil­lion, higher than the roughly $1.2 bil­lion val­u­a­tion an of­fer from In­dian ri­val Ma­ni­pal Health En­ter­prises Pvt Ltd gave it.

Some of For­tis’s mi­nor­ity share­hold­ers are dis­sat­is­fied with the Ma­ni­pal of­fer, and it is un­clear if the IHH price ap­peals to them.

Shares of For­tis fell about 2 per cent yes­ter­day af­ter the an­nounce­ment by IHH and were down 1.87 per cent around 05:12 GMT, while trad­ing in IHH shares listed in Kuala Lumpur was halted.

A merger with a hos­pi­tals chain such as Ma­ni­pal might make more sense, said an an­a­lyst with a bro­ker­age in Mum­bai, adding that more de­tails of the IHH of­fer were needed.

For­tis, which is under in­ves­ti­ga­tion over fi­nan­cial fraud, has seen in­ter­est from mul­ti­ple par­ties since Ma­ni­pal of­fered to buy it 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 ($191.5 mil­lion).

IHH said yes­ter­day For­tis in­di­cated it was un­able to en­gage due to bind­ing agree­ments with Ma­ni­pal Health En­ter­prises Pvt Ltd, Ma­ni­pal Global Health Ser­vices and pri­vate eq­uity firm TPG Asia.

The Malaysian firm had said last week in its pro­posal let­ter that it ex­pected a re­sponse from For­tis be­fore April 18.

“Given the ev­er­chang­ing 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 the let­ter. — REUTERS

Newspapers in English

Newspapers from Viet Nam

© PressReader. All rights reserved.