Malaysian healthcare firm IHH extended validity of its offer to pick up stake in Fortis HealthcareNSE -1.02 %, becoming the second contender to revise its bid after a proposal by the Munjal-Burman combine was accepted.
IHH’s offer to invest up to Rs 7,400 crore in Fortis for over 50% stake is now valid until May 29, the company told the Malaysian stock exchange on Thursday. The previous validity ended on May 15. The decision comes days after Manipal-TPG improved its bid for Fortis group’s hospital business.
“If there is indeed a new bid process that the board is proposing to initiate, we would like to participate in such a process and request that we be kept informed of any developments regarding the same,” IHH said in a letter to the Fortis board of directors on Thursday.
The Fortis board picked a proposal by Sunil Kant Munjal of Hero Enterprises and the Burman family of DaburNSE -0.23 % group on May 10. This bid was accepted even though financial advisers Arpwood Capital and Standard Chartered favoured offers made by IHH and Manipal-TPG.
Following the board’s decision, Manipal-TPG upped its offer for Fortis on Monday, proposing to infuse Rs 2,100 crore at Rs 180 per share, compared with Rs 160 per share earlier.
The Munjal-Burman combine proposes infusion of Rs 1,050 crore upfront through a preferential allotment of equity shares and convertible warrants. An additional Rs 750 crore would be brought in after approval of Fortis’ shareholders.
It’s not clear whether Fortis’ board will consider the latest offers from IHH and Manipal-TPG. An email sent to independent Fortis director Brian W Tempest, who chaired the meeting on May 10, remained unanswered by press time on Thursday.
The independence of the board has been called into question by shareholders during the company’s efforts to lock down a deal. In April, a group of minority shareholders called for an extraordinary general meeting to oust four board members over these concerns.
The spotlight on the board prompted former Fortis co-promoter Shivinder Singh to write to the board on May 14, objecting to the way the bidding process has been run. He sought an EGM on June 9 to ratify the Munjal-Burman proposal.
