The board of Fortis Healthcare will meet this week to evaluate the competing bids from three suitors for its hospitals business.
“The Fortis board will be meeting this week to look at all eligible options and determine the future course of action that is in the best interests of the company, employees and shareholders,” said a statement by the company on Monday.
Last week, the contest for securing the hospitals business intensified after Fortis has received two binding offers. The first was a revised offer from Manipal Hospital Enterprises and the second was a
joint binding offer from Sunil Kant Munjal’s Hero Enterprise Investment Office and the Burman family of Dabur. IHH Healthcare of Malaysia also threw its hat in the ring with a non-binding expression of interest.
Manipal Hospitals Enterprises, backed by global private investment firm TPG, offered to buy Fortis last month in a deal that would combine its 14 hospitals with Fortis’ 34. The combined entity would be worth Rs 15,000 crore and have the muscle to compete with leader Apollo Hospitals.
But Manipal was forced
to raise its offer price by about 21% after minority shareholders opposed the deal.
In an interview with The Economic Times, star investor Rakesh Jhunjhunwala had questioned the deal with Manipal-TPG, insisting that the hospital chain should be sold through a “fair” process that allows all interested parties to bid.
IHH, a provider of premium integrated healthcare services, has proposed to buy Fortis for around $1.3 billion and at a premium to the offer by Manipal Hospitals.
Hero and the Burmans propose to invest Rs 1,250 crore directly into Fortis Healthcare.The Fortis board had approved the demerger of the hospitals business into Manipal Hospital Enterprises on the March 27, 2018. The board had also approved sale of its 20% stake in SRL Limited to Manipal Hospitals on the same day, both being subject to shareholders and regulatory approvals.