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Malaysia’s IHH Healthcare Berhad has launched a counter bid for Fortis Healthcare making an initial offer of ₹160 per share subject to satisfactory completion of a limited due diligence.
The company is in competition with Manipal Health Enterprises Ltd (MHEL) and Hero-Dabur combine, which have both made non-binding offers to buy stake in FHL.
“We confirm you that on April 11 2018 the Board of Directors of the Company have received an unsolicited non-binding expression of interest from IHH Healthcare Berhad for possible due diligence and participation with the Company,” according to an communication sent by FHL to the National Stock Exchange and BSE on Friday.
As per IHH’s non-binding expression of interest put forward to FHL’s Board of Directors, a price of up to Rs 160 per Fortis share would be appropriate based on publicly-available information and its preliminary analysis, but the offer would be subject to satisfactory completion of a limited due diligence.
“Our request for such due diligence primarily stems from the inability of the statutory auditors of the Company to opine on its financial position as on December 31 2017 and regulatory investigations that are currently underway,” it said.
Commenting on the implementation agreement FHL has got into with MHEL and TPG Capital, IHH noted that the transaction involved various complex steps over a prolonged period. “We believe that we could provide an alternative transaction construct, which in our view, would offer a better option to the Company’s shareholders at an attractive valuation,” it said.
Earlier this week, MHEL increased its offer to buy FHL’s hospital by about 21 per cent in response to opposition by minority shareholders who complained that the deal was undervalued. The new offer values Fortis' hospital business at ₹6,061 crore or ₹116 a share .
A second offer was made by Sunil Munjal-owned Hero Enterprise Investment and the Burmans of Dabur India on Thursday who got together to bid for FHL offering Rs. 1,250 crore.
According to their offer, the allotment and pricing would be in accordance with SEBI guidelines for preferential shares or ₹ 156 per share, whichever is higher.
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