Even as the Fortis Healthcare board is meeting on Thursday to consider the multiple proposals it has received for fund infusion or takeover, the excitement around the potential deal refuses to die down. On Thursday morning, Malaysian healthcare group IHH as well as the joint bidders Sunil Mujal (of Hero Enterprises) and Burman Family office have submitted revised offers for the healthcare group.
In a notification to the Bombay Stock Exchange (BSE), Fortis informed that 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 in the company. In its revised proposal, IHH has said that subject to satisfactory completion of due diligence, it is ready to infuse Rs 40 billion at Rs 160 a share which will fund the buyout of RHT assets as well as provide immediate liquidity towards working capital and infrastructure upgrades.
IHH has also said that it is open to working with the company's existing shareholders towards solving the company's funding requirements.
On the other hand, Munjal-Burman duo has upgraded their last week's offer of Rs 12.5 billion to Rs 15 billion. The revised binding offer includes an investment of Rs 5 billion through preferential issue of equity shares and Rs 10 billion through preferential issue of warrants "based on the current business and financial position of the company as reflected in the company's various public filings". Munjal-Burmans have, however, waived off their demand for due diligence, but now they have sought two board seats.
Late Wednesday night, Fortis had informed the exchanges that two large portfolio investors have demanded the replacement of the existing board.
East Bridge Capital Master Fund and Jupiter India fund which own over 12 per cent shares in Fortis Healthcare served notice today for holding of an extraordinary general meeting to select new board members. The notice was moved a day before the board meeting to discuss two binding and non-binding offers for investment and stake purchase in the beleaguered hospital chain. The investors have demanded the appointment of Suvalaxmi Chakraborty, Ravi Rajagopalan and Indrajit Banerjee on the board and have sought the removal of Brian Tempest, Harpal Singh, Sabina Vaisoha and Lt Gen Tejinder Singh.
In an exchange notification, Fortis Healthcare said it was evaluating the notice and same will be placed before the board in due course.
Meanwhile, market sources also claimed that KKR-backed Radiant Life Care is also expected to submit a bid today for the cash-strapped Fortis. While KKR denied to comment on speculations, an e-mail sent to Radiant remained unanswered.