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India's Hero, Burman offer to invest in Fortis Healthcare

Reuters  |  BENGALURU/MUMBAI 

By and Suvashree Choudhury

BENGALURU/MUMBAI (Reuters) - India's Healthcare said on Thursday it had received an investment offer worth 12.5 billion rupees ($191.5 million) from Investment Office and the

is an investment company formed by Sunil Munjal, founder of the country's largest The is the private investment arm of the family that owns consumer goods company

and Burman, which own stakes in Fortis, said they had together tried unsuccessfully to discuss an acquisition of last month.

In a letter, the two firms said they were making a new investment offer as they were "concerned" as shareholders about the company's financial health given that it has less than 700 million rupees of cash available.

In the new investment offer, the two firms said they were ready to pay 5 billion rupees in cash before any due diligence, and invest the remaining 7.5 billion rupees after the completion of due diligence within a period of three weeks.

"The proposed infusion of funds not only addresses the immediate liquidity needs of the company, but also addresses the company's long-term growth requirements," and Burman said in the joint proposal that submitted with its regulatory filing.

Earlier in the day, reported that Malaysian investment holding firm Healthcare planned to bid for Healthcare at a price marginally better than the one put forward by Manipal Enterprises Pvt Ltd.

Manipal offered on April 10 to buy at around 155 rupees per share, or 80.39 billion rupees.

The bid could value the giant at as much as $1.3 billion, according to

IHH, which wants to work with on a friendly offer, has asked the board for time to update its due diligence before making a formal bid, the report added.

said on a call last month that other parties, which he declined to identify, had expressed interest in buying

declined to comment on Thursday and did not respond to a request for comment on the reported offer.

shares ended up 6 percent at 153.9 rupees.

($1 = 65.2800 Indian rupees)

(Reporting by in Bengaluru, additional reporting by Zeba Siddiqui and Liz Lee; Editing by Gopakumar Warrier, and Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 23:16 IST
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