IHH Healthcare revises bid for Fortis


IHH Healthcare Bhd confirmed it has raised its take-over offer for India’s Fortis Healthcare Ltd, to 175 rupees (RM10.31) per share and a subsequent equity infusion at a per share price not exceeding 175 rupees.

In a filing to Bursa Malaysia yesterday, Asia’s largest private healthcare group reiterated its seriousness and commitment to an investment in Fortis with the revised proposal — a 9.4% premium the 160 rupees per share valuation that was offered on April 24.

IHH had earlier proposed injecting 6.5 billion rupees immediately into Fortis, and then 33.5 billion rupees after due diligence.

All other terms and conditions in IHH’s last offer will continue to apply to the new offer, which is valid until 5pm on May 15.

On Monday, Fortis announced two of its suitors had upped their bids to invest in the company. Apart from IHH, Indian businessmen Sunil Munjal and Anand Burman also raised their joint offer to 18 billion rupees from 15 billion rupees via subscription of shares and warrants.

Other bidders include rival hospital operator Manipal Healthcare Enterprises Pte Ltd, China’s Fosun International Ltd and Radiant Life Care Private Ltd.

Last week, Manipal increased its binding offer by 4.3% to 63.22 billion rupees.

Mumbai-based Radiant Life Care Pte Ltd has also made an offer to acquire Fortis’ Mulund Hospital for 12 billion rupees, in addition to a separate non-binding offer involving a separation of diagnostic services company SRL from the Fortis stake sale process.

The renewed offers have further intensified the five-cornered battle for control over Fortis, which has 30-odd hospitals in India. A successful deal would mean access to the private health- care market in Asia’s third- largest economy.

The binding offers will be evaluated by an expert advisory panel, upon the deadline on May 1. Fortis’ board is expected to meet on May 10 to consider the panel’s recommendation.

At the close yesterday, IHH’s shares traded eight sen, or 1.32%, lower at RM6, with 6.06 million shares done, giving it a market capitalisation of RM48.94 billion.