IHH Healthcare, Munjals & Burmans enhance offers for Fortis

New Delhi: IHH Healthcare Berhad and Munjals-Burmans (combine) on Tuesday revised upwards their offers for Fortis ahead of the deadline set by the board of the healthcare chain for submission of binding bids.

While IHH Healthcare Berhad increased its offer to directly invest in Fortis Healthcare at Rs 175 per share, the Munjals and Burmans also said they would increase their investment to Rs 1,800 crore, without any due diligence, from a previously revised offer of Rs 1,500 crore.

"The company today has received an enhanced revised proposal from IHH to invest directly into the company at a per share price of Rs 175 per share," Fortis Healthcare said in a regulatory filing.

In a letter to the board of directors of Fortis Healthcare, IHH, which had earlier proposed to immediately infuse Rs 650 crore in the Indian firm as part of an overall proposal to invest Rs 4,000 crore, revised its offer upwards at Rs 175 per share.

"The subsequent equity infusion shall be at a price not exceeding Rs 175 per share... 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," IHH said in its letter.

The Malaysian firm said the enhanced revised offer is valid till May 15.

In another regulatory filing, Fortis Healthcare said Hero Enterprise Investment Office and the Burman Family Office have also hiked their joint proposal to invest Rs 1,800 crore directly in the company.

Under their revised offer, the Munjals and Burmans proposed to invest Rs 800 crore through a preferential allotment of equity shares at Rs 167 per share.

Further, they offered to invest another Rs 1,000 crore via preferential issue of warrants priced at Rs 176 per share or as per Sebi ICDR guidelines, whichever is higher.

Last week, Fortis Healthcare had said its board would meet on May 10 to take a decision on the binding bids for the company as recommended by the expert advisory committee (EAC).

The committee will evaluate all binding bids received by the company from any party except the Manipal and TPG consortium till 12 noon on May 1.

"In line with the obligations towards Manipal and TPG consortium, Manipal and TPG consortium will have the ability to provide a revised financial proposal till 12 noon on May 6, 2018 in relation to all binding bids received by the Company anytime till 12 noon on May 1, 2018," Fortis Healthcare had said in the regulatory filing.

Last week, Manipal and TPG consortium had again revised their offer by increasing the valuation of the hospital business to Rs 6,322 crore from Rs 6,061 crore.

The consortium, which is the first to make a binding offer to Fortis, had initially valued the hospital business of the healthcare chain at Rs 5,003 crore in its offer on March 27.

Hero Enterprise and Burman Family Office had expressed unhappiness over the longer time given to the Manipal-TPG consortium saying equal opportunity should be provided to all the parties involved in the bidding of Fortis Healthcare.

Fortis Healthcare has already received binding offers from four entities - KKR-backed Radiant Life Care, IHH Healthcare, Manipal/TPG consortium, and Munjal and Burman family offices.

The fifth bidder, Fosun Health Holdings, an arm of Fosun International, which made a non-binding proposal to invest a total of USD 350 million (over Rs 2,295 crore) at a price up to Rs 156 per share, has so far not revised its offer.