Race for Fortis: IHH Healthcare, Burmans and Munjals revise offer; a timeline on the story so far

Even as the deadline set by Fortis board to review all binding offers received ended at 12 noon on Tuesday, the bidding war heated up with two of its five suitors boosting their bids to invest in the company on Tuesday. Fortis Healthcare, which runs about 30 hospitals in India, has become a target of a heated takeover battle, with five entities bidding for the embattled company. Fortis has set up an advisory committee to evaluate binding offers from suitors vying to acquire the company, or take a stake in it. 1 May is the deadline for binding offers, which will be evaluated by an expert advisory panel. The board is set to meet on 10 May. Here is a timeline of details of the bids: March 27: Manipal Hospitals Enterprises Private Ltd offers to buy Fortis’ hospital business April 10: Manipal sweetens bid for Fortis hospitals April 12: Unsolicited binding offer from Hero Enterprise Investment Office and the Burman Family Office April 13: Malaysia’s IHH Healthcare Berhad tops Manipal’s bid April 17: China’s Fosun International’s unit Fosun Health Holdings submits offer [caption id=“attachment_4452487” align=“alignleft” width=“380”] A Fortis hospital building in New Delhi. Reuters[/caption] April 18: IHH Healthcare revises its offer April 19: Munjals, Burmans revise their offer Radiant Life Care Private Ltd offers to invest in Fortis April 24: IHH Healthcare tweaks earlier proposals Offers to immediately infuse Rs 6.50 billion under a binding proposal and subsequently invest up to Rs 33.50 billion under a non-binding proposal Radiant Life Care revises offer for Fortis Makes binding offer for Fortis Mulund Hospital at an enterprise value of Rs 12 billion Retains proposal to demerge Fortis’ hospital business into a new company Proposes to spin off Fortis’ SRL business The offer values FHL at Rs 170 or 175 per share, depending upon SRL’s valuation after proposed demerger The all-cash offer of Rs 126 per share for the hospital business stays, which excludes SRL stake Manipal raises Fortis offer  Raises offer to Rs 63.22 billion from Rs 60.61 billion To provide financial assistance of up to Rs 7.50 billion. In addition to buying the SRL stake from PE investors, Manipal to acquire a 5 percent stake in SRL from Fortis May 1: IHH Healthcare sweetens bid Immediate equity infusion at Rs 175 per share Subsequent equity infusion at price up to Rs 175 per share Munjals & Burmans submit modified investment proposal Raises offer to invest Rs 18 billion, including upfront investment of Rs 10.50 billion, via subscription to shares and warrants Offer comprises Rs 8 billion via preferential issue of shares, Rs 10 billion rupees via preferential issue of warrants Shares valued at 167 rupees apiece, while each warrant to fetch Rs 176