Manipal Health Enterprises, IHH, Munjal-Burman and Radiant Life Care were earlier shortlisted
Cash-strapped Fortis Healthcare's Board will meet on Friday to decide which of the two binding bids it has received from Malaysian IHH Healthcare Berhad or Manipal Health Enterprises is better.
The Board will meet on Friday "to consider, and if thought fit approve raising funds through issue of securities on a preferential allotment basis...," Fortis Healthcare said in a regulatory filing.
The company received these two bids on July 3. In all, four players were shortlisted -- Manipal Health Enterprises backed by TPG Capital, IHH, Hero Enterprise Investment Office-Burman Family Office (Munjal-Burman), and KKR-backed Radiant Life Care. The latter two did not submit any proposal, possibly due to legal tangles that Fortis is into and the ongoing inquiries by Securities and Exchange Board of India and Serious Fraud Investigation Office.
The newly formed Board had set out certain conditions for these four companies to participate in the bidding process. According to the conditions, there should be a minimum investment of Rs 1,500 crore in Fortis through preferential allotment, a plan to fund RHT Health Trust's acquisition, plan to provide exit to private equity investors of SRL. The unconditional bid should include funding source and plan to retain the current management as well as employees.
Earlier the potential investors were never allowed access to the data room, which happened during the latest bidding round.
After the announcement on Board meeting scheduled on Friday, share price of Fortis Healthcare went down by 1.82% to close at Rs 137.80 per unit.
For almost two years, the Gurugram-based healthcare firm has been on a look to raise funds through stake sale. In the past, twice, binding bids were finalised and once again the entire bidding process was restarted.
Earlier, IHH after having raised the offer was looking at investing Rs 4,375 crore at Rs 175 per share to have over 50% stake.
Similarly, MHE-TPG had last offered Rs 180 per share, valuing Fortis Healthcare at Rs 9,403 crore, for a 18.4% holding. It had proposed to buy SRL's private equity investments for Rs 1,113.4 crore and eventually the merger of MHE with Fortis.
BOOSTER DOSE
- Manipal Health Enterprises, IHH, Munjal-Burman and Radiant Life Care were earlier shortlisted
- The latter two did not submit any proposal, possibly due to legal tangles of Fortis
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The newly formed Board had set out certain conditions for these four companies to participate in the bidding process. According to the conditions, there should be a minimum investment of Rs 1,500 crore in Fortis through preferential allotment, a plan to fund RHT Health Trust's acquisition, plan to provide exit to private equity investors of SRL. The unconditional bid should include funding source and plan to retain the current management as well as employees.
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