Malaysian healthcare group has revised its offer for Fortis HealthcareNSE 4.13 % on the last day to submit bids that a two-member expert advisory committee will be studying to recommend a deal for the company.
IHH’s latest proposal includes an “immediate equity infusion” at a share price of Rs 175 per share and a subsequent equity infusion at a per share price not exceeding this, Fortis told the Bombay Stock Exchange on Tuesday.
IHH had earlier proposed a per share price of Rs160.
All other terms and conditions in IHH’s last offer dated April 24 will continue to apply to this new offer, which is valid until 5 pm on May 15.
“We would like to reiterate that IHH, as a long term strategic investor, is best placed to fund, guide, support and drive the company forward to realise its potential to the fullest and generate value for all stakeholders,” IHH stated in a letter to Fortis on Tuesday.
On April 24, the Malaysian firm had offered an “immediate injection” of Rs650 crore into Fortis by way of preferential issue and allotment of equity shares at Rs 160 per share. This is a binding offer that does not require due diligence.
The proposal to infuse Rs 3,350 crore is non-binding.
Among the information IHH seeks for its due diligence, it wants access to information on the current status of material litigations across priority Fortis hospitals like Escorts, Vashi, Vasant Kunj, Malar and Mulund.
It is also seeking access to details of any investigations underway by the Securities and Exchange Board of India and the Serious Fraud Investigation Office, the Enforcement Directorate and any other regulators.
It also wants a copy of the master purchase agreement between Fortis and RHT, copies of “all material contracts” exceeding Rs100 million entered into by the company and its subsidiaries from July 2017 and details of any other key litigations affecting Fortis and its subsidiaries.
IHH has been competing against binding offers by joint bidders Hero Enterprise Investments Office and the Burman Family Office, Radiant Life Care and KKR as well as a consortium of Manipal Health Enterprises and TPG.
Other bidders in the fray had earlier included China’s Fosun Health Holdings.
