Fortis deal heats up with IHH making a better offer; stock jumps 4%

IHH Healthcare Berhad, the world’s second largest health care group,  has entered the contest to acquire control of Fortis Hospitals. It has increased the price earlier offered by  Manipal Hospitals.

IHH gave a non-binding offer to the board of Fortis Healthcare on Wednesday, at a valuation of Rs 160 a share for its hospital and diagnostic business. IHH has sought time from Fortis management to update its due-dilligence.

This bid comes a day after private equity major TPG-backed Manipal Hospitals tweaked its offer to soothe investor concerns. According to revised offer, Fortis Healthcare’s equity valuation is Rs 155 a share.