Malaysia's IHH Healthcare extends validity of revised offer for Fortis

Malaysian firm IHH Healthcare Berhard today extended the acceptance period for its enhanced revised proposal for acquiring Fortis to June 30 in the wake of changes in the board of the cash-strapped healthcare chain.

Earlier, out of four directors whose removals were sought by two institutional investors, three directors - Harpal Singh, Sabina Vaisoha and Tejinder Singh Shergill - had resigned ahead of an EGM called to vote on the matter.

This week, the shareholders had voted out the fourth director, Brian Tempest, from the board in the extraordinary general meeting (EGM) held on May 22.

"In order to enable the reconstituted board to fully consider and evaluate our proposal, we now extend the acceptance period of the enhanced revised IHH proposal until 11.59 pm on June 30," IHH Healthcare said in a letter to the directors of Fortis Healthcare (FHL).

IHH Healthcare, which had revised its offer to directly invest in Fortis at Rs 175 per share on May 1 from an initial non-binding offer to invest in Fortis at Rs 160 per share, had earlier stated that its enhanced offer would expire on May 29.

The Malaysian healthcare chain is among the four suitors -- Munjals-Burmans combine, TPG-Manipal combine and KKR-backed Radiant Life Care -- which had put binding bids for Fortis.

Earlier this week, Manipal-TPG combine had also extended the validity of its modified offer for Fortis Healthcare to June 6, 2018.

Fortis' board of directors is scheduled to meet on May 30 to consider and approve the audited financial results for the quarter and financial year ended March 31, 2018.

The resignations of three directors and removal of Tempest has cast a shadow over the ongoing attempt to sell Fortis as these four directors were among the five who had voted in favour of Munjals-Burmans' Rs 1,800-crore bid for the healthcare firm.

The board of Fortis on May 10, in a 5-3 decision, opted to go with the offer from Munjals-Burmans combine to invest Rs 1,800 crore in Fortis.

On May 14, Manipal-TPG combine had again sweetened its offer for Fortis at Rs 180 per share, thereby increasing the valuation of the healthcare company to Rs 9,403 crore.

Manipal-TPG combine was the first to make a binding offer for the cash-strapped healthcare chain.

China's Fosun Healthcare was also in the race for Fortis initially, but it did not make a binding bid for the company.