With more healthcare companies throwing its hat in the ring to acquire stake in Fortis healthcare, its board has formed an expert committee to evaluate the bidding proposals. The committee which will be chaired by Deepak Kapoor, former chairman and CEO of PwC India, has decided to consider only binding offer. It will give its final recommendation by April 26.
Till now four suitors including Manipal/TPG consortium, promoters of Hero Group and Dabur India, Malaysias IHH Healthcare Berhad and Chinese firm Fosun Health Holdings Ltd are in the race to acquire stake in troubled healthcare chain.
Out of these four, Manipal/TPG consortium, promoters of Hero Group and Dabur India have given binding offers while remaining two, IHH Healthcare Berhad and Fosun Health have shown non-binding interests.
“In exercise of its fiduciary duties, the board has decided to evaluate the binding offers and has appointed an advisory committee and also directed Standard Chartered Bank (SCB) to assist the committee,” a statement from Fortis read.
On Thursday, Radiant Life Care, backed by KKR, submitted an offer of Rs 165 per share for Fortis Healthcare. Radiant expressed its interest to buy Fortis Memorial Research Institute, its flagship hospital in Gurgaon, as well as Fortis Shalimar Bagh.
Last week, the Manipal/TPG led consortium had raised their offer for Fortis to Rs 155 per share by valuing the hospital business higher at Rs 6,061 crore from Rs 5,003 crore in its initial offer on March 27.
Hero Enterprise Investment Office and Burman Family Office which had earlier made an offer to invest Rs 1,250 crore, has revised the same by offering to invest Rs 1,500 crore directly at a valuation of Rs 161.6 per share.
Fortis Healthcare had also received an unsolicited non-binding expression of interest from Fosun Health Holdings Ltd which offered a price up to Rs 156 per share.
In a joint statement, the board of directors of Fortis said the company has over the past many months been involved in deliberations for a potential transaction with the objective of partnering with strong players that would help it strategically and financially before entering into a transaction with Manipal/TPG consortium on March 27, 2018.
“We firmly believe that it would be the responsibility of the board to direct and guide the company in a manner that brings conformity and certainty to the ongoing process…We are confident that at the end of this process, we would have enabled the company in meeting its long-term objectives of growth, profitability and shareholder value enhancement,” they added.
Reacting to the development, Hero Enterprise Chairman Sunil Kant Munjal said, “We are pleased to note that the board of Fortis Healthcare has found merit in our offer, which is simple, binding and is the quickest to implement.”
“We believe that our offer is the most compelling and is significantly better than any other options being explored by the company. We believe that this is the only offer which is in the best interest of all stakeholders of Fortis,” he further added.