Fortis stake sale: Manipal-TPG revises offer again, values it at Rs 8,358 cr; proposes to infuse Rs 2,100 crore upfront

New Delhi: Manipal Health Enterprises Pvt Ltd (MHEPL) on Sunday revised yet again its offer for Fortis Healthcare Ltd (FHL), raising the value to Rs 8,358 crore.

"For the purpose of the merger, we propose a value of Rs 8,358 crore to be attributed to FHL and a value of Rs 6,070 crore to be attributed to MHEPL," the revised offer said, according to a Fortis filing on the BSE. It translates into Rs 160 per equity share.

Manipal also offered to subscribe to the equity shares of Fortis by way of preferential allotment for Rs 2,100 crore at a price per equity share of Rs 160.

The move is aimed at helping the Fortis deal with short term liquidity concerns, repayment of existing loans and payment for the acquisition of the relevant Indian entities from Religare Health Trust, MHEPL said in its revised offer to the Fortis board.

Manipal Health has also offered to merge itself with FHL to create one of the leading healthcare platforms in India, the filing said On 24 April, MHEPL had revised its offer for Fortis Healthcare again, raising the value to Rs 6,322 crore. The earlier revised offer of 10 April valued Fortis hospital business at Rs 6,061 crore.

A Fortis hospital building in New Delhi. Reuters

A Fortis hospital building in New Delhi. Reuters

As per Sunday's offer, MHEPL said that post the acquisition of the SRL stake from PE investors, the SRL board would be restructured so as to ensure that no member of the promoter group of FHL is part of it.

"The implementation of the new offer does not require any further due diligence to be conducted by us and we are ready to work with FHL and its management to ensure swift execution of the steps required to be taken to implement the revised offer," MHEPL further said.

The company recognises the significance of the acquisition of assets from RHT and the preferential allotment will help FHL to partly fund the acquisition of assets from RHT, it added.

IHH Healthcare Berhad and the Munjals-Burmans combine have already revised upwards their offers for Fortis ahead of the deadline set by the board of the healthcare chain for submission of binding bids.

While IHH increased its offer to directly invest in Fortis Healthcare at Rs 175 per share, the Munjals- Burmans also said they would increase their investment to Rs 1,800 crore, without any due diligence, from a previously revised offer of Rs 1,500 crore.

Fortis board is scheduled to meet on 10 May to take a decision on the binding bids for the company as recommended by the expert advisory committee (EAC).

Fortis has received binding offers from four entities - KKR-backed Radiant Life Care, IHH Healthcare, Manipal/TPG consortium, and Munjal and Burman family offices.

The fifth bidder, Fosun Health Holdings, an arm of Fosun International, which made a non-binding proposal to invest a total of $350 million (over Rs 2,295 crore) at a price up to Rs 156 per share, has so far not revised its offer.


Updated Date: May 07, 2018 08:20 AM