Race for Fortis: Disappointed, keeping options open, says Malaysia's IHH Healthcare

New Delhi: Disappointed over losing the race to acquire Fortis Healthcare, Malaysia's IHH Healthcare said on Friday that it is currently evaluating options while seeking support from shareholders of the Indian firm.

IHH Healthcare Managing Director and CEO Tan See Leng claimed that his company's bid offered the highest price and most comprehensive solution and addressed the short term liquidity requirements and long term strategic objectives of Fortis.

"We are disappointed by the decision made by the Board of Fortis, as we believe we submitted the most compelling bid for the benefit of all Fortis stakeholders," he said in a statement.

While he did not spell out the company's future course of action, Leng said,"We remain committed and are currently evaluating our options. We are open to further discussions with all stakeholders, and look forward to the support of Fortis shareholders."

Representational image. Reuters.

Representational image. Reuters.

With strong execution track record and decades of global healthcare experience, IHH is best poised to provide the requisite vision, leadership, and financial strength to grow Fortis into a leading healthcare player, he asserted.

Last evening, Fortis Healthcare had announced that its board had picked the offer from Munjals-Burmans combine over four other suitors who made binding offers.

The board decided by majority to recommend to shareholders to approve the revised offer of Hero Enterprise Investment Office-Burman Family Office (Dabur group) made on 1 May for an upfront equity infusion of Rs 800 crore at a price of Rs 167 per share through preferential allotment.

The Munjal-Burmans further agreed to invest another Rs 1,000 crore via preferential issue of warrants priced at Rs 176 per share.

Malaysia's IHH Healthcare Berhad had increased its offer to directly invest in Fortis Healthcare at Rs 175 per share. It had earlier made a non-binding offer to invest in Fortis at Rs 160 per share.

IHH had then revised it to binding offer to immediately infuse Rs 650 crore by way of a preferential issue and allotment of equity shares at Rs 160 per share in FHL as part of an overall proposal to invest Rs 4,000 crore.

Manipal-TPG combine and KKR-backed Radiant Life Care had also put in binding bids for Fortis.

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, did not revise its offer.


Updated Date: May 11, 2018 15:46 PM

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