Hotline: 1800 102 2007
X
Search Business Opportunities
Jul, 04 2018

Fortis deal: TPG-backed Manipal, IHH Healthcare submit fresh binding offers

The new offers come after Fortis decided in late May to start afresh a bidding process for its sale.

Malaysia’s IHH Healthcare Berhad and India’s Manipal Health Enterprises Pvt. Ltd have submitted new binding offers to acquire struggling hospital chain Fortis Healthcare Ltd.

IHH said in a filing to the Malaysian stock exchange on Tuesday that its new binding offer supersedes previous proposals and that the new offer is valid till 16 July.

Separately, a person familiar with the matter told VCCircle that Ranjan Pai-led Manipal Health had also submitted a binding offer for Fortis.

In a stock-exchange filing, Fortis said that it had received binding bids and that its board will evaluate the offers in consultation with its advisers. It didn’t name the bidders.

The new offers come after Fortis decided in late May to start afresh a bidding process for its sale. It had initially asked for fresh bids by 14 June. However, it first extended the deadline to 28 June and subsequently to 3 July.

Apart from IHH and TPG-Manipal, a consortium of Hero Enterprise Investment Office and Burman Family Office and KKR-backed Radiant Life Care Pvt. Ltd had also entered the renewed bidding process for Fortis. It couldn’t be ascertained whether they had submitted binding bids.

Separate emails sent to Manipal, Radiant Life and Hero Enterprise for comment on the binding bids did not elicit an immediate response.

The first bidding process had seen these same set of suitors bidding aggressively, leading to multiple enhanced offers. Finally, the consortium of Hero Enterprise and Burman Family Office was announced as the winner on 10 May. However, the decision was likely made against the opinion of some board advisers and had not gone down well with a section of the company’s shareholders.

Within days of the winning announcement, TPG-Manipal raised the offer to buy Fortis and later extended its validity period. IHH Healthcare also extended the validity period of its offer.

In their last proposals to buy Fortis before the renewed bidding process began, IHH had proposed to invest as much as Rs 4,000 crore in Fortis and had said it would make an immediate equity infusion at Rs 175 per share while TPG-Manipal’s offer had promised to invest in Fortis at Rs 180 per share.

Shares of Fortis jumped 6.9% on Tuesday to close at Rs 142 apiece on the BSE, where the benchmark Sensex gained 0.3%.

Comment
image
Related opportunities
  • Mens Wear
    About Us : The company is in the clothing business since..
    Locations looking for expansion Maharashtra
    Establishment year 2007
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Men's footwear
    About: Established in 2010, Vision Footcare India Private Limited is promoted..
    Locations looking for expansion Delhi
    Establishment year 2010
    Franchising Launch Date 2018
    Investment size Rs. 30lac - 50lac
    Space required 600
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Fine Dine Restaurants
    About Us:  Meal O Drama is an award-winning modern bistro in..
    Locations looking for expansion New Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Delhi New Delhi
  • About Us: ARC, a premium brand of Jindal Stainless Group, is..
    Locations looking for expansion New Delhi
    Establishment year 2003
    Franchising Launch Date 2003
    Investment size Rs. 30lac - 50lac
    Space required 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Delhi New Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities