Five entities are engaged in a bidding war for embattled Fortis Healthcare, which has set up an advisory committee to evaluate binding offers from suitors vying to acquire the company, or take a stake in it. Fortis Healthcare Ltd (FHL), which runs about 30 hospitals in India, has become a target of a heated takeover battle, with five entities bidding for the embattled company.
Fortis has set up an advisory committee to evaluate binding offers from suitors vying to acquire the company, or take a stake in it.
May 1 was the deadline for binding offers, which will be evaluated by an expert advisory panel. The board is set to meet on May 10.
Following are the details of the bids:
March 27 - Manipal Hospitals Enterprises Private Ltd offers to buy Fortis' hospital business
• Fortis shareholders to get 10.83 shares in ManipalHospitals for every 100 Fortis shares held
• Binding offer to buy 20 pct of SRL's share capital from the company for roughly Rs 7 billion and 30.93 pct from the PE investors for about Rs11.13 billion
• Total infusion of about Rs 39 billion by Manipalpromoter and TPG Asia VII SF
April 10 - Manipal sweetens bid for Fortis hospitals
• Revises offer to 155 rupees per share
• SRL Ltd, in which Fortis holds a stake, to continue to beFHL subsidiary
• Boards of SRL and FHL to consider the merger of bothcompanies
• Manipal to undertake rights issue for up to Rs 40 billion
• Afterward upward revision, equity value stands at Rs 60.61billion
April 12 - Unsolicited binding offer From Hero Enterprise Investment Office and the Burman Family Office
• Unsolicited binding offer to invest Rs 12.50 billion via preferential allotment route
April 13 - Malaysia's IHH Healthcare Berhad tops Manipal's bid
• Unsolicited non-binding expression of interest for Rs 160 per share
April 17 - China's Fosun International's unit Fosun Health Holdings submits offer
• Unsolicited non-binding expression of interest shall notenable Fosun to hold more than 25 percent of Fortis securities
• Primary infusion at up to Rs156 per share,subject to due diligence to be completed within three weeks, upto total investment of $350 million
April 18 - IHH Healthcare revises its offer
• Offer is contingent on due diligence, IHH is ready toinfuse Rs 40 billion at price up to Rs 160 per shares
April 19 - Munjals, Burmans revise their offer
• Revise their offer to invest Rs 15 billion ($227.20mln) directly into the company
• Upfront investment of Rs 7.50 billion with Rs 5 billion via preferential issue of shares; Rs 10 billion via preferential issue of warrants
• Group said they seek two board seats and recommend thatmore independent directors be added
Radiant Life Care Private Ltd offers to invest in Fortis
• Gets unsolicited non-binding expression of interest fromRadiant Life Care with a proposal for investing and/orre-structuring Fortis
• Proposal includes offer for demerger of hospital businessfrom FHL into a new company
• The all-cash offer is Rs 126 per share; it values thewhole of Fortis at Rs 165 per share, or Rs 85.58 billion, including the SRL stake.
• Offer subject to Radiant being able to buy 26 per cent ormore shares of the new company via open offer
April 24 - IHH Healthcare tweaks earlier proposals
• Offers to immediately infuse Rs 6.50 billion under a binding proposal and subsequently invest up to Rs 33.50 billion under a non-binding proposal
Radiant Life Care revises offer for Fortis
• Makes binding offer for Fortis Mulund Hospital at an enterprise value of Rs 12 billion
• Retains proposal to demerge Fortis' hospital business into a new company
• Proposes to spin off Fortis' SRL business
• The offer values FHL at Rs 170 or 175 per share, depending upon SRL's valuation after proposed demerger
• The all-cash offer of Rs 126 per share for the hospital business stays, which excludes SRL stake
Manipal raises Fortis offer
• Raises offer to Rs 63.22 billion from Rs 60.61 billion
• To provide financial assistance of up to Rs 7.50 billion
• In addition to buying the SRL stake from PE investors, Manipal to acquire a 5 per cent stake in SRL from Fortis
May 01 - IHH Healthcare sweetens bid
• Immediate equity infusion at Rs 175 per share
• Subsequent equity infusion at price up to Rs 175 per share
Munjals & Burmans submit modified investment proposal
• Raises offer to invest 18 billion rupees, including upfront investment of Rs 10.50 billion, via subscription to shares and warrants
• Offer comprises Rs 8 billion via preferential issue of shares, Rs 10 billion via preferential issue of warrants
• Shares valued at Rs 167 apiece, while each warrant to fetch Rs 176
May 06 - Manipal sweetens bid again, outlines cash injection plan
• Values Fortis' hospital business at Rs 83.58 billion, i.e. Rs 160 per share
• Offers to inject Rs 21 billion by way of preferential allotment, giving Manipal and TPG the right to appoint non-executive directors, provided Fortis board has a minimum of seven directors
• SRL board to be restructured post acquisition of PE stake; deal to be reworked as previous term sheet had expired
