Manipal-TPG sweetens Fortis bid; asks board to reconsider decision on Munjal-Burman offer

In yet another twist in the ongoing race for Fortis, Manipal-TPG combine today revised their offer for the cash-strapped healthcare chain with a proposal to invest in the company at Rs 180 per share, thereby increasing valuation of the company to Rs 9,403 crore.

Having lost out to the Munjal-Burmans combine last week, Manipal-TPG which was the first to make a binding offer, also asked the board of Fortis Healthcare Ltd (FHL) to reconsider its decision of recommending the same to the shareholders of the company.

In a regulatory filing, FHL said it has received revised offer from Manipal and TPG with a proposal to invest in the company, while making public a letter sent by Manipal Health Enterprises Pvt Ltd (MHEPL) to the Fortis board.

"For purposes of the merger, a value of Rs 9,403 crore shall be attributed to FHL and a value of Rs 6,070 crore shall be attributed to MHEPL as had been originally determined by the independent valuers of for the purpose of the transaction," MHEPL said in its letter presenting the revised offer.

It further said, "The preferential allotment shall be undertaken at a price of Rs 180 per share."
Asking the board of FHL refer their "modified offer" to the company's shareholders, MHEPL said, "We request the Fortis board to reconsider its decision to refer the Hero and Burman offer to the shareholders."