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Fortis takeover saga: Manipal-TPG extends validity of modified offer
Fortis takeover saga: Manipal-TPG extends validity of modified offer
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By eHealth Network - 25 May 2018
A consortium of Manipal-TPG has extended the validity of its modified offer to invest in the Fortis Healthcare. As per an official statement from Fortis Healthcare, a letter was received from Manipal-TPG combine, stating that later was extending the validity of its offer to June 6, 2018 from the earlier date of May 29.
We understand that the FHL board is still in the process of considering the modified new offer, a letter addressed to the directors of Fortis Healthcare Ltd (FHL) stated.
“As you are aware, our modified new offer is valid till May 29, 2018 and in order to provide the FHL board with sufficient time to consider our modified new offer, we propose to extend the validity of our modified new offer,” the letter said.
The offer shall stand automatically revoked and terminated if it is not accepted by the FHL Board or the company’s shareholders within their acceptance period respectively, the letter further added.
On May 14, Manipal-TPG combine had sweetened its offer by putting up valuation of Fortis healthcare to Rs 94.03 billion at Rs 180 per share.
The combine was the first to make a binding offer for the cash-strapped healthcare chain.
“For purposes of the merger, a value of Rs 94.03 billion shall be attributed to FHL and a value of Rs 60.7 billion shall be attributed to MHEPL as had been originally determined by the independent valuers for the purpose of the transaction,” Manipal Health Enterprises Pvt Ltd (MHEPL) had said in a letter presenting the revised offer.
There were five stakeholders including TPG-Manipal combine, IHH Healthcare and KKR-backed Radiant Life Care and China’s Fosun Healthcare.
TPG-Manipal combine, IHH Healthcare and KKR-backed Radiant Life Care had made binding offer while China’s Fosun Healthcare offered non-binding bid.
IHH Healthcare has also extended its revised offer for Fortis until May 29. It had increased its offer to directly invest in Fortis at Rs 175 per share on May 1.
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