Malaysia's IHH revises offer for Fortis Health, to invest Rs 650 cr without due diligence

Malaysia’s IHH Healthcare on Tuesday made a revised offer for Fortis Healthcare to meet the latter's condition to consider only binding bids.

In its revised offer IHH made a binding proposal to inject Rs 650 crore into the company through preferential issue without seeking due diligence.

IHH will infuse Rs 650 crore valuing Fortis share at Rs 160 per share in lieu of two board seats.

The binding commitment will be subject to the condition that IHH will be given immediate access to carry out a legal and financial due diligence.

IHH said the equity infusion will primarily be used for payment of immediate dues to employees, creditors as well as easing the debt servicing needs of the company.

The non-binding proposal to infuse the remaining Rs 3,350 crore will involve a preferential issue and allotment of equity shares. This will be subject to satisfactory completion of the due diligence and execution at the agreed price not exceeding Rs 160 per share.

“We remain strongly committed to an investment in the company and have revised our proposal into a simple and clear construct which addresses the immediate financial needs of the company and hence represents the most compelling proposition for the company as well as its stakeholders,” IHH said in its offer.

With the latest revision of the offer, IHH is back in the race to take control over Fortis.

The revision became imminent for IHH after Fortis Board which met last week said it will be considering only binding offers.

Also Read: Fortis to consider only binding offers

Fortis received five bids from Manipal-TPG (which valued it at Rs 155 per share), Munjal-Burmans (at Rs 160 per share), IHH Healthcare (Rs 160 per share), Fosun (Rs 156 per share) and KKR-backed Radiant Life Care (Rs 165 per share).

The company's board, which met last week, said the advisory committee will meet on April 25 to evaluate binding offers and recommend the best one to it. The board is expected to take a decision on April 26.

Fortis Board appointed a three member committee headed by Deepak Kapoor, former chairman of PWC India to evaluate binding offers and recommend the best offer to the board which is meeting on April 26.