Fortis Healthcare board to meet on July 13 to decide on binding bids

Fortis Healthcare board is scheduled to meet July 13 to decide on binding offers it had received from the suitors.

The board will meet to consider and approve raising funds through issue of securities on a preferential allotment basis, Fortis said in a statement to stock exchanges.

Moneycontrol earlier reported the Malaysian healthcare provider, IHH, backed by the southeast Asian country’s sovereign fund Khazanah, had emerged as the frontrunner for Fortis.

According to sources, IHH is said to have made a binding offer to invest around Rs 4,000 crore through a preferential issue valuing the company of about Rs 175 per share.

Meanwhile, Manipal-TPG consortium remained tight-lipped on details but said it's waiting for the board to take a final call.

"We are cautiously optimistic," said Ranjan Pai, Chairman of Manipal Hospitals, referring to the possibility of the consortium closing the deal. Pai declined to give further details.

Last time, Manipal-TPG had valued Fortis at Rs 180 per share, making it the highest bidder. The consortium also said it will invest Rs 2,100 crore upfront as part of the deal.

Last month, beleaguered healthcare provider Fortis had extended the deadline for submitting binding bids due to a delay in the release of audited financial results. That was after the hospital chain initiated a fresh bidding process following a complete revamp of its board of directors.

Radiant Life Care and Munjal-Burmans have opted out of the race.

Delay in declaring audited numbers, former promoters Singh brothers' claim on brands, deteriorating finances and onerous conditions put by the board have sapped the enthusiasm of the bidders.