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Malaysia's IHH says Fortis board declines to engage on takeover offer

Reuters  |  MUMBAI 

(Reuters) - Malaysia's Healthcare Bhd said on Monday India's Healthcare Ltd declined to engage with the company regarding a takeover offer, citing binding agreements with other parties.

IHH, one of Asia's largest healthcare operators, offered to buy last week at a price that values the chain at about $1.3 billion -- higher than the roughly $1.2 billion valuation an offer from Indian rival gave it.

Some of Fortis's minority shareholders are dissatisfied with the Manipal offer, and it is unclear if the price appeals to them.

Shares of fell about 2 percent on Monday after the announcement by and were down 1.87 percent around 0512 GMT, while trading in shares listed in was halted.

A merger with a chain such as Manipal might make more sense, said an with a brokerage in Mumbai, adding that more details of the offer were needed.

Fortis, which is under investigation over financial fraud, has seen interest from multiple parties since Manipal offered to buy it last month. Two Indian investors - Sunil Munjal's Hero Enterprise and the -- offered last week to make an investment worth 12.5 billion rupees ($191.5 million).

said on Monday indicated it was unable to engage due to binding agreements with Manipal Health Enterprises Pvt Ltd, and private equity firm TPG

The Malaysian firm had said last week in its proposal letter that it expected a response from before April 18.

"Given the everchanging competitive dynamics, reserves the right to pursue all necessary steps to ensure that the shareholders of are provided with the opportunity to realise the value inherent in our proposal," had said in the letter. (https://bit.ly/2vhFDHB)

(Reporting by Zeba Siddiqui in and Tanvi Mehta in Bengaluru; Editing by and Subhranshu Sahu)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, April 16 2018. 11:36 IST
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