Fortis stake sale: Manipal Health Enterprises-TPG combine extends validity of revised offer to 6 June
Manipal-TPG combine has said it has extended the validity of its modified offer for Fortis Healthcare to 6 June, 2018.
New Delhi: Manipal-TPG combine has said it has extended the validity of its modified offer for Fortis Healthcare to 6 June, 2018.
On 17 May, Malaysian firm IHH Healthcare Berhard had extended the acceptance period of its enhanced revised proposal for Fortis to 29 May.
In a letter to the directors of Fortis Healthcare Ltd (FHL), Manipal-TPG combine said it understands that the FHL board is still in the process of considering the modified new offer.
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"As you are aware, our modified new offer is valid till 29 May, 2018 and in order to provide the FHL board with sufficient time to consider our modified new offer, we propose to extend the validity of our modified new offer...," the letter added.
The modified new offer shall remain valid and binding in its entirety until 6 June, 2018, for acceptance by FHL Board and for recommendation to the shareholders of FHL, Manipal-TPG combine said.
The offer shall stand automatically revoked and terminated if it is not accepted by the FHL Board or the company's shareholders within their acceptance period respectively, the letter said.
Representational image. Fortis Hospital official website
Earlier on 14 May, Manipal-TPG combine had again sweetened its offer for Fortis at Rs 180 per share, thereby increasing the valuation of the healthcare company to Rs 9,403 crore.
The combine was the first to make a binding offer for the cash-strapped healthcare chain.
"For purposes of the merger, a value of Rs 9,403 crore shall be attributed to FHL and a value of Rs 6,070 crore shall be attributed to MHEPL as had been originally determined by the independent valuers for the purpose of the transaction," Manipal Health Enterprises Pvt Ltd (MHEPL) had said in a letter presenting the revised offer.
It further said: "The preferential allotment shall be undertaken at a price of Rs 180 per share."
MHEPL claimed that its modified new offer "is significantly better than any other offer/bid FHL has received to date, including the Hero-Burman offer".
There were five suitors in the race for Fortis, including TPG-Manipal combine, IHH Healthcare and KKR-backed Radiant Life Care, which gave binding offers.
China's Fosun Healthcare did not make a binding bid for the company.
IHH Healthcare has extended its revised offer for Fortis till 29 May after which it shall lapse. It had increased its offer to directly invest in Fortis at Rs 175 per share on 1 May. It had initially made a non-binding offer to invest in Fortis at Rs 160 per share.
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