Hotline: 1800 102 2007
X
Search Business Opportunities
May, 15 2018

TPG-backed Manipal Revises offer for Fortis even after winner announcement

Manipal, backed by private equity giant TPG, increased its offer to buy Fortis shares by 12.5% to Rs 180 apiece from its most recent offer of Rs 160 each.

As the bidding war for India’s second-largest hospital chain shows no signs of ending, Manipal Hospital Enterprises Pvt. Ltd has revised its offer for Fortis Healthcare Ltd for a fourth time, despite the target company’s board picking a winner last week.

Manipal, backed by private equity giant TPG, increased its offer to buy Fortis shares by 12.5% to Rs 180 apiece from its most recent offer of Rs 160 each. The latest offer values Fortis at Rs 9,403 crore ($1.4 billion), the hospital chain said in a stock-exchange filing.

The announcement came after the Fortis board, on 10 May, recommended the offer made by a consortium of Hero Enterprise Investment Office and Burman Family Office to the company’s shareholders. The board decision, made against the advice of some of its own advisers, hasn’t gone down well with a section of the company’s shareholders.

Hero Enterprise is led by chairman Sunil Munjal, part of the family that runs Hero MotoCorp Ltd, India’s biggest two-wheeler maker. The Burman family is the promoter of consumer goods maker Dabur India Ltd.

The Munjal-Burman combine had offered to make an upfront equity infusion of Rs 800 crore in Fortis at Rs 167 per share through a preferential allotment and another Rs 1,000 crore through a preferential issue of warrants at Rs 176 apiece. Manipal has offered to invest Rs 2,100 crore.

In its latest offer, Manipal said the Fortis board might find it challenging to get the approval of 75% shareholders for the Munjal-Burman bid. It argued that the Munjal-Burman proposal only provides partial short-term relief to Fortis and offers no long-term plan.

Manipal also said that the Munjal-Burman bid doesn’t take care of Fortis’ planned acquisition of Singapore-listed RHT Health Trust nor does it provide an exit opportunity to diagnostic subsidiary SRL’s private equity investors. Manipal has offered to buy out SRL’s PE investors.

In its new offer letter, Manipal also said that a merger between Fortis and Manipal Hospitals will generate an additional operating profit of Rs 200 crore for the combined entity. This will translate to an additional Rs 50 per share for Fortis shareholders over the long term, it said.

Fortis had been looking for buyers for more than a year but legal cases against its founders, brothers Malvinder Singh and Shivinder Singh, deterred potential investors. However, suitors began eyeing Fortis when the siblings lost control of the company in early March after lenders seized the shares they had pledged to take on loans.

Comment
Related opportunities
  • Casual dine Restaurants
    About: Savera, one of the first star hotels in Chennai is..
    Locations looking for expansion Tamil nadu
    Establishment year 1980
    Franchising Launch Date 2017
    Investment size Rs. 30lac - 50lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chennai Tamil nadu
  • Multi Cuisine Restaurant
    About:DėėZ is the leading, largest & oldest organized Biryani chain..
    Locations looking for expansion New Delhi
    Establishment year 1987
    Franchising Launch Date 2017
    Investment size Rs. 50lac - 1 Cr.
    Space required 200 - 1100 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater South Delhi New Delhi
  • Others Food Service
    About Us: With renowned success of Above & Beyond and Patch..
    Locations looking for expansion Maharashtra
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Ice creams & Yogurt Parlors
    Want to enhance the joy of eating by creating a..
    Locations looking for expansion Delhi
    Establishment year 2005
    Franchising Launch Date 2009
    Investment size Rs. 5lac - 10lac
    Space required 50
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New delhi 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