Hotline: 1800 102 2007
X
Search Business Opportunities
May, 07 2018

TPG-Manipal Again Sweetens Fortis bid, offers $313 mn cash infusion

TPG-Manipal have now proposed to invest Rs 2,100 crore ($313 million) via a preferential allotment of shares at Rs 160 apiece, Fortis said in a stock-exchange filing on Sunday.

Manipal Hospital Enterprises Pvt. Ltd and its private equity investor TPG Capital have again revised their offer for India’s second-largest hospital chain, Fortis Healthcare Ltd for a third time, upping the ante in the five-way takeover battle.

TPG-Manipal has now proposed to invest Rs 2,100 crore ($313 million) via a preferential allotment of shares at Rs 160 apiece, Fortis said in a stock-exchange filing on Sunday.

The cash infusion is to help the company repay loans, meet working capital expenditure and fund the acquisition of Singapore-listed Religare Health Trust (RHT), Fortis said.

The new offer values Fortis Healthcare at Rs 8,358 crore ($1.25 billion) and is valid till 15 May, according to Manipal’s letter to the Fortis board. Manipal also said that its term sheet previously drawn with the private equity investors in SRL Ltd has expired and that the new offer values the diagnostics unit of Fortis at Rs 3,600 crore.

Shares of Fortis on Monday closed at Rs 155.75 apiece, falling 1.2% on the BSE where the benchmark Sensex gained 0.8%.

Meanwhile, Reuters cited Manipal CEO Ranjan Pai as saying that the new offer for a cash infusion was a “more risky” approach that the company had to take to fight rival bidders.

Pai said the new offer was riskier because of the uncertainty around the outcome of the probe by the Serious Fraud Investigation Office into allegations that Fortis founders Malvinder Singh and Shivinder Singh had siphoned funds off the company. The founder brothers deny wrongdoing and left the company in February.

TPG-Manipal was the first suitor for Fortis and had signed a pact to acquire the hospital business of Fortis and SRL in late March. However, that offer raised shareholder concerns regarding lower valuation.

Comment
Related opportunities
  • Others Health Care & Fitness
    About Us: Tecfit20, a venture of emtstecfit20 pvt ltd, is the..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 350
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Designer Wear
    About : Started in 2014, H&S sources its fabric from Italian..
    Locations looking for expansion Maharashtra
    Establishment year 2014
    Franchising Launch Date 2017
    Investment size Rs. 50lac - 1 Cr.
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Adventurous Sporting
    About Us : The Sports Gurukul (TSG) is Mumbai’s first of..
    Locations looking for expansion Maharashtra
    Establishment year 2002
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Juices / Smoothies / Dairy parlors
    About : Albano is a traveler, who enjoys experiencing different cultures..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
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