KKR backed Radiant Life Care too has extended an offer to Fortis Healthcare. However, their offer is unlikely to be considered as the hospital’s management had cleared the air on Thursday that only “binding offers” not requiring due diligence will be considered by them.
KKR backed Radiant Life Care too has extended an offer to Fortis Healthcare. However, their offer is unlikely to be considered as the hospital’s management had cleared the air on Thursday that only “binding offers” not requiring due diligence will be considered by them.
On Thursday, the Board had formed an Advisory Committee to evaluate only binding offers not asking for due diligence. This committee will present its report to the Board on April 25.
Though the latest offer asks for due diligence as is also a non-binding expression of interest, thereby, making it ‘ineligible’.
The latest bid offers Rs 165 per share (SRL at Rs 39 and net value of Rs 126 of the new company), which is the highest offer it has received formally.
The initial offer by TPG Capital backed Manipal Health Enterprises was for Rs 136, which was revised to Rs 155. The Munjal-Burman have offered Rs 156 per share for preferential issue of equity shares and Rs 161.60 for preferential issue of warrants. Whereas, the rejected two bids – Fosun Health Holdings and IHH Healthcare Berhad had offered Rs 156 and Rs 160 per scrip, respectively.
The proposal has demerger of hospital business from Fortis Healthcare into a new company, excluding the stake in SRL (Fortis holds 56% in SRL).
“The offer is subject to Radiant being able to acquire 26% or more shares of the new company via open offer. In case Radiant is unable to acquire 26% or more shares, the new company shall do preferential allotment at Rs 126 per share to Radiant to enable a 26% stake,” read the offer letter.
Apart from this, Radiant has also offered to fund and underwrite the acquisition of RHT via rights issue. “Radiant is prepared to purchase Fortis Healthcare’s interest in FMRI, Gurugram and Fortis Shalimarbagh at the same EV/EBITDA multiple being imputed to overall transaction. In such event the above offer of Rs 126 per share shall be accordingly reduced to reflect the transaction,” adds the offer.
Meanwhile, the advisory committee constituted will comprise of Deepak Kapoor (ex-Chairman & CEO, PwC) as Chairman, Renuka Ramnath, former MD & CCEO of ICICI Venture and Lalit Bhasin, Managing Partner of Bhasin & Company.
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