Fortis Board to look at 'all eligible options' this week

Maricruz Casares
Abril 17, 2018

Last week, IHH offered Rs 160 per share for Fortis Healthcare, valuing the company at Rs 8,300 crore, compared to Manipal Group's offer at Rs 155 per share and Hero Enterprise-Burman family's combined offer at Rs 156 per share in the first of a two-stage offer.

Earlier yesterday, IHH said it was informed by Fortis' board of the latter's inability to engage with IHH as Fortis had entered into binding agreements with Manipal Health Enterprises Pte Ltd, Manipal Global Health Services and TPG Asia.

Fortis Healthcare had scaled 52-week high of Rs 230.90 on May 3, 2017, and 52-week low of Rs 106.65 on February 6 this year.

In the last one week, Gurugram-based hospital chain received three offers - a revised offer from MHE, a joint bid from Hero Enterprise Investment Office-Burman Family Office, and a non-binding expression of interest from IHH Healthcare.

As part of its proposal, Tan stated that IHH will also work with the board and management of Fortis to identify optimal financing solutions to enable the company to "fulfil its commitments during this challenging phase and stay afloat".

The development led to the Fortis shares ending with losses of almost 2 per cent at Rs 149 on bourses. However, Munjal-Burman joint offer still awaits a final call.

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This statement gives hope to IHH Healthcare Bhd that its non-binding takeover bid for Fortis could be considered afterall.

Fortis, which is facing multiple probes, received a setback a few months back when the Delhi High Court ruled in favour of Japanese pharmaceutical company Daiichi Sankyo and allowed it to collect ₹3,500 crore from promoters Malvinder Singh and Shivinder Singh.

Though the revised MHE's offer had a validity of seven days starting April 10, with the board meeting on Thursday, the validity has likely been extended by a couple of days.

Meanwhile, IHH advised its shareholders or investors to exercise caution and seek appropriate independent advice when dealing in IHH shares.

IiAS believes the current board can get additional support in assessing the three bids and coming to a decision among the complex sets of pulls and pressures, without necessarily waiting for board expansion.

The release added that the Fortis Board will take a decision that is in the "best interests" of the company, employees and shareholders.

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