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Fortis Healthcare Ltd (FHL) has received a fourth offer for its hospital chain business — this time from China’s Fosun International Group. The other groups that have made offers for the company include the TPG-Manipal combine, Malaysia’s IHH Healthcare and the Munjal-Burman family.
In a non-binding expression of interest to the board of directors of Fortis Healthcare, Fosun Health Holdings, a wholly owned subsidiary of Fosun International, offered to inject ₹100 crore within the next 45 days that includes an option of immediately subscribing to convertible debt instruments of the company, according to a stock exchange filing.
Also read: Who will be the last one standing for Fortis?
This is under the condition that Fortis agrees to a one-month period of exclusivity for Fosun to undertake due diligence and negotiate a proposal to acquire stake in the company, the letter said.
Fosun is also interested in exploring the opportunity to invest at a price of up to ₹156 per share via primary infusion. The total investment by Fosun with this proposal will be up to $350 million and shall not enable the company to hold 25 per cent or more securities of Fortis, it added.
In the stock exchange filing on Tuesday night, Fortis Healthcare confirmed that it had received an unsolicited non-binding expression of interest from Fosun and gave the details of the offer.
The other offers received by FHL include a revised one by Manipal Hospital Enterprises Pvt Ltd which increased its offer to buy FHL’s hospital business by about 21 per cent last week in response to the opposition by minority shareholders who complained that the deal was undervalued. The new offer values Fortis' hospital business at ₹6,061 crore or ₹155 per share.
A second offer was made by Sunil Munjal-owned Hero Enterprise Investment and the Burmans of Dabur India last Thursday who got together to bid for Fortis Healthcare offering ₹1,250 crore. As per the offer, the allotment and pricing would be in accordance with the SEBI guidelines for preferential shares or ₹156 per share, whichever is higher.
Malaysia’s IHH Healthcare Berhad then launched a counter bid for FHL making an initial offer of ₹160 per share subject to satisfactory completion of a limited due diligence.
Fortis, which is facing multiple probes, received a setback a few months ago when the Delhi High court ruled in favour of Japanese pharmaceutical company Daiichi Sankyo and allowed it to collect ₹3,500 crore from the promoters Malvinder Singh and Shivinder Singh.
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