ALSO READFortis to demerge hospitals business into Manipal Board of Fortis Healthcare approves scheme of arrangement Fortis Healthcare shares dive 11% on hospital biz demerger Evaluating unsolicited offer from Manipal Health Enterprises: Fortis Fortis Healthcare gets unsolicited offer from Manipal Health
The latest move comes amid concerns raised by various FHL shareholders about the valuation of the hospital business.
In an unsolicited offer, Manipal Health said it "proposes to offer an upward revision of Rs 1,058 crore to the shareholders of FHL over and above hospital business of FHL's equity valuation of Rs 5,003 crore".
This would result in an equity value of Rs 6,061 crore being attributed to the hospital business of FHL, which would result in a "more favourable share exchange ratio for shareholders of FHL", Manipal Health said in the letter to FHL.
The letter, which has been submitted to stock exchanges by FHL, also said that Manipal Health would look at a rights issue worth up to Rs 4,000 crore after completion of the demerger. The rights issue was not in the original offer.
As per the offer, Manipal Health would not purchase any equity shares from FHL and SRL would continue to be a subsidiary of the latter.
The original proposal had envisaged purchase of 1.59 crore or 20 per cent stake of SRL for a consideration of around Rs 720 crore.
Last month, FHL board approved the demerger of Fortis hospitals business, which would be acquired by Manipal Hospitals and TPG Capital, along with the sale of 20 per cent stake in diagnostics chain SRL Ltd. Ranjan Pai and TPG would invest Rs 3,900 crore into Manipal Hospitals.
"FHL shall not be entitled to accept the revised proposals piece-meal and rejection/ non-acceptance by FHL of any of the revised proposals shall be considered a rejection of the all the revised proposals," the letter said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)