A new twist in the merger and acquisition (M&A) saga of Fortis Healthcare has come to the fore. It has been revealed that promoters of Hero Group and Dabur India have submitted a joint bid to infuse Rs1,250 crore to acquire a significant stake in Fortis Healthcare.

Both Hero group and Dabur India which are currently having three per cent stake in Fortis Healthcare intend to invest Rs 1,250 crore in two tranches.

The development comes at a time when IHH Healthcare and Manipal Hospitals Enterprises Pvt. Ltd are already vying for Fortis Healthcare assets.

As per this latest proposal, out of Rs 1, 250 crore, Rs 5,00 crore will be invested immediately and Rs 750 crore will be post due diligence.

Sunil Munjal, the chairman of Hero Enterprise, Anand Burman, the chairman of Dabur Group and Mohit Burman, the managing director of Elephant Capital LLP and director on Daburs board, have said this infusion will help in addressing urgent financial needs of the company. The Fortis Healthcare is said to have only Rs 700 million in liquid cash.

In a joint statement Munjals and Burmans said, We are investing an amount of Rs 500 crores, based on the current business and financial position of the company reflected in the Company’s various public filings, and taking into account information in the public domain, without doing any due diligence.

Our offer does not envisage any changes in the current structure, operations and assets of the company and is simple and is almost immediately implementable, said Anand Burman.

Meanwhile a statement from the Fortis Healthcare said that the proposal is under uation by the company.

Since last several months, a host of private equity firms and hospital chains have been trying hard to acquire control of Fortis Healthcare.

Last Month Manipal and Fortis Hospitals announced a merger deal. But it was not a smooth affair as financial investors protested the valuation offered for the Fortis groups hospitals business in the deal. On Tuesday, Manipal revised the term, offering Rs 155 a share to Fortis.

On Wednesday, IHH made a non-binding offer to the board of Fortis Healthcare offering Rs 160 a share for its hospitals and diagnostics business.

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