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Two last-minute revised offers were made on Tuesday morning for Fortis Healthcare Ltd’s (FHL) hospital chain before the noon deadline — one by Malaysia’s IHH Healthcare Berhad and the other by the Munjal-Burman duo.
Malaysia’s IHH Healthcare Berhad improved its bid for the company by making an offer of immediate equity infusion at a per-share price of ₹175 as compared to its previous offer to infuse ₹650 crore through a preferential issue at ₹160 per share, made a week ago. While the immediate equity infusion of equity is non-binding, the subsequent infusion will be binding and subject to due diligence, the company clarified.
“The subsequent equity infusion shall be at a per-share price not exceeding ₹175. For avoidance of doubt, this subsequent equity infusion will be subject to satisfactory completion of the due diligence and execution of mutually acceptable binding definitive documents,” the submission to the board of directors stated.
Munjal to infuse ₹1,800 cr
The Munjal-Burman duo has proposed to invest ₹1,800 crore into Fortis, against its earlier offer to infuse ₹1,500 crore.
In its letter to the Fortis board of directors, the joint bidders offered to infuse ₹800 crore through a preferential issue of equity shares at ₹167 per share or as per SEBI ICDR guidelines, whichever is higher. They have also proposed an additional ₹1,000 crore through a preferential issue of warrants at ₹176 per share or as per SEBI ICDR guidelines, whichever is higher.
While the bidding process for FHL is now closed (the deadline was noon on May 1) for all players, Manipal & TPG consortium has until May 6 now to improve its offer.
“In line with the obligations towards Manipal and TPG consortium, if any new or modified binding bids are received anytime till 12 noon on May 1, Manipal & TPG consortium can revise their offer till May 6,” the board of directors of Fortis had decided on Friday.
Manipal’s statement
The expert advisory committee will evaluate all the binding bids made for the company. The Fortis board will meet on May 10 to consider the recommendations of the EAC.
Meanwhile, Manipal Hospitals, the original bidder for Fortis, said in a late evening statement that the day’s events hadn’t changed ground realities. “While we note the revised bids that have been submitted for Fortis Healthcare today, the fundamentals of these offers compared to TPG-Manipal's proposition remain unchanged,” it said.
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