Fortis board shortlists four bidders to participate in the sale process

Fortis Healthcare on Friday said it has shortlisted four companies to take part in the re-opened bidding of the company.

The four parties in the race are Munjal-Burmans, IHH Healthcare, Manipal-TPG and Radiant Life Care.

“The company has received interest from various interested parties on May 31, 2018 as per the timelines specified in the Invitation for Transaction Participation,” Fortis said in a statement to stock exchanges.

“The board of the company has now decided to include the following four parties in the process,” the statement added.

Now the bidders will be provided 10 days for financial and legal due diligence and an opportunity to interact with the management and advisors who have conducted vendor due diligence.

Following due diligence, the bidders will have to submit bids by June 14. The board with the help of financial and legal advisors will recommend the best offer to shareholders.

The board has put conditions for the bidders including minimum investment of Rs 1,500 crores into Fortis by way of preferential allotment; plan for funding of RHT Health Trust (RHT) acquisition; plan for providing exit to private equity investors of SRL, among others.

RHT listed on Singapore stock exchange houses some of the hospital assets that Fortis operates paying a service fee.

To be sure there were no new entrants in the bidding process.

The board earlier said it had decided to invite original three bidders, namely Munjal-Burman Consortium, Manipal-TPG Consortium, and IHH Healthcare to participate in the process.

Radiant Life Care backed by US private equity firm KKR which was also in the race to buy Fortis and lagged behind other bidders is now throwing its hat into the ring.

Here is how each bidder had valued Fortis previously.