IHH Healthcare, Manipal-TPG in fray for Fortis as bid deadline ends

Malaysian healthcare provider IHH Healthcare and Manipal-TPG have made fresh binding offers for Fortis Healthcare even as the deadline for submission of bids ended on Tuesday.

It is yet not clear if the Munjal-Burmans consortium has put in a bid. Their spokesperson hasn't confirmed till now.
IHH, the Malaysian healthcare provider, said its binding offer "supersedes and replaces" its earlier enhanced revised proposal. But it did not disclose valuation details.
"Legal obligations and agreement between IHH and Fortis will be created only after the board of Fortis approves the preferential allotment in terms of the share subscription agreement to be executed between Fortis and IHH or the nominee of IHH," IHH said in a statement to stock exchanges.
IHH said its bid will be valid till 5pm of July 16, and will be deemed thereafter to have been withdrawn.
The Malaysian healthcare provider, backed by the Southeast Asian country’s sovereign fund Khazanah, had last time made an offer to invest Rs 4,000 crore valuing the company at Rs175 per share. Out of Rs4,000 crore, it proposed to invest Rs650 crore upfront without due diligence.
The Manipal-TPG consortium has also confirmed submitting bids for Fortis Healthcare. This time round, reports say, the valuation offered for Fortis may not be the same.
The last time, Manipal-TPG valued Fortis at Rs180 per share, making it the highest bidder. The consortium also said it will invest Rs2,100 crore upfront as part of the deal.
Munjal-Burmans, who had earlier offered to invest Rs1,800 crore in Fortis Healthcare at weighted average valuation of Rs175 per share, did not put in fresh bid as the deadline ended on Tuesday.
As per the fresh criteria, which was put up by the Fortis board on May 29, the potential buyer had to make a minimum investment of Rs 1,500 crore into Fortis Healthcare by way of preferential allotment.
"The Board of Directors of the company has received Binding Bids on July 3, 2018," Fortis Healthcare said in a BSE filing today. The binding bids will be evaluated by the board in consultation with its advisors, it added. 
As per the fresh criteria, put up by the Fortis board on May 29, the potential buyer had to make a minimum investment of Rs1,500 crore into Fortis Healthcare by way of preferential allotment. Apart from having a plan for funding the acquisition of RHT Health Trust (RHT), suitors should also have a plan for providing an exit to private equity investors of diagnostic arm SRL.
RHT is a separately listed Singapore-based trust that holds Fortis’s real estate assets like hospitals.
Last month, beleaguered healthcare provider Fortis had extended the deadline for submitting binding bids due to delay in the release of audited financial results. That was after the hospital chain initiated a fresh bidding process following a complete revamp of its board of directors.
The board has shortlisted four suitors — Munjal-Burmans, Manipal-TPG, IHH and Radiant Life Care — to participate in the bidding process.