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Fortis Board to meet this week to determine future course of action

The company's statement comes hours after Malaysia's IHH Healthcare said Fortis has expressed inability to engage with it over its offer to acquire the Indian healthcare firm at up to Rs 160 per share

Press Trust of India  |  New Delhi 

Fortis

on Monday said its board will meet this week to "look at all eligible options" as two more parties have entered the fray to acquire it after its pact with Health Enterprises.

The company's statement comes hours after Malaysia's said Fortis has expressed inability to engage with it over its offer to acquire the Indian healthcare firm at up to Rs 160 per share due to binding agreements Health Enterprises.

IHH had last week joined the race to acquire India's troubled Fortis Healthcare, offering to acquire its shares at up to Rs 160 apiece, higher than Manipal's Rs 155 which valued the company at Rs 60.61 billion.

The Malaysian firm's offer came a day after Sunil Kant Munjal-led Investment Office and Burman Family Office offered to invest Rs 12.50 billion in the healthcare chain at up to Rs 156 per share.

"The will be meeting this week to look at all eligible options and determine the future course of action that is in the best interests of the company, employees and shareholders," said in a statement.

Last week, Fortis has received two binding offers -- one is a revised offer from Health Enterprises Pvt Ltd (MHEPL) and the second is a joint binding offer from Investment Office and Burman Family Office expressing interest in the company, it added.

In addition, the company has also received a non-binding expression of interest from Bhd, the statement said.

had raised its offer for Fortis to Rs 155 per share by valuing the hospital business higher at Rs 60.61 billion, from Rs 50.03 billion initially.

In the letter to the directors of FHL last week, Berhard Managing Director and Group CEO Tan See Leng expressed his company's "strong interest in Ltd and its affiliates in a suitable manner".

Earlier in the day, in a filing on Malaysian stock exchange IHH said, "In response to the letter, the Board of Fortis has indicated its inability to engage with IHH as Fortis has entered into binding agreements with Health Enterprises Pvt Ltd, Global Health Services and TPG Asia."

The company further said, "At this juncture, IHH has not entered into any discussions, negotiations or transactions."


In the letter last week, Leng had said: "As on date, based on publicly-available information and our preliminary analysis, we believe a price of up to Rs 160 per Fortis share to be appropriate, subject to satisfactory completion of a due diligence."

Leng also hinted at the possibility of IHH making a revised counter offer if the other suitors were to revise their bids.

"Notwithstanding anything in this letter, given the ever-changing competitive dynamics, IHH reserves the right to pursue all necessary steps to ensure that the shareholders of Fortis are provided with the opportunity to realise the value inherent in our proposal including the right to revise the indicative offer price in any manner, IHH deems fit," he said in the letter.

In March, the had approved demerger of its hospitals business, which was to be acquired by Hospitals and TPG Capital, along with the sale of 20 per cent stake in diagnostics chain SRL Ltd, in a Rs 39 billion deal.

First Published: Mon, April 16 2018. 18:18 IST
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