KKR-backed Radiant Life Care makes revised bid for Fortis, offers Rs 1,200 cr without due diligence for Mulund Hospital

New Delhi: KKR-backed Radiant Life Care on Tuesday made a revised bid for Fortis Healthcare Ltd (FHL) with a binding offer to acquire its Mulund hospital for an enterprise value of Rs 1,200 crore. This is the second revised offer received by Fortis after Malaysian major IHH Healthcare made a binding offer to infuse Rs 650 crore immediately in the Indian firm as part of an overall proposal to invest Rs 4,000 crore.

The company has received a binding offer from Radiant Life Care, FHL said in a regulatory filing.

"In order to provide immediate liquidity to FHL, we would like to make a binding offer to purchase Fortis Mulund hospital without due diligence and as a going concern at an enterprise value of Rs 1,200 crore as the first step," Radiant said in its revised offer to FHL.

The transaction would provide an immediate liquidity of Rs 680 crore to FHL, Radiant said. Radiant had earlier offered to acquire at least 26 percent stake in FHL at Rs 126 per share, excluding its diagnostic business SRL.

Fortis Hospital. Pic courtesy: Fortis Hospital official website

Fortis Hospital. Pic courtesy: Fortis Hospital official website

Radiant in its new deal said it has proposed spinning off or excluding SRL so that FHL can run an independent competitive sale process to maximise returns. "If the valuation achieved for 100 percent equity value of SRL is Rs 4,000 crore or Rs 43.20 per share of FHL, the implied per share value of FHL ascribed by our offer would be Rs 170," according to the new offer.

In case the SRL valuation is Rs 4,500 crore, the implied value per share would be Rs 175 apiece. It also proposed a demerger of hospitals business of FHL into a new company, excluding FHL's stake in SRL.

It will launch an all-cash open offer for the shareholders of the new hospital company at Rs 126 apiece subject to conditions. Radiant's offer comes after Malaysia's IHH Healthcare Berhad on Tuesday made a binding offer to immediately infuse Rs 650 crore in the Indian firm as part of an overall proposal to invest Rs 4,000 crore.

The revised offers have come two days ahead of a meeting of Fortis Healthcare Ltd (FHL) board to consider recommendation by an expert advisory panel formed to finalise evaluation process of only binding offers.

Manipal-TPG combine and Munjals and Burmans were the only two groups that had made binding offers out of total of five suitors in race.

Chinese firm Fosun Health Holdings and KKR-backed Radiant Life Care had also made non-binding expression of interests in FHL.

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Updated Date: Apr 25, 2018 08:05 AM

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