While Fortis Healthcare has a pact with Manipal Health Enterprises, IHH Healthcare which is based in Malaysia has recently said that it cannot acquire Fortis due to its binding agreements with Manipal. IHH offers healthcare facilities through 49 network hospitals across 9 countries. Last week, the Fortis board had received a letter from IHH expressing its interest in investing at Rs.160 apiece and the option to revise the offer if the competition was stronger. However, the Fortis board has decided to opt for a merger with Manipal instead as it is an established hospital chain.
IHH had offered to acquire Fortis Healthcare shares at Rs.160 apiece which is higher than Manipal’s offer at Rs.155 apiece. Another interested party is the joint-partnership, Hero Enterprise Investment Office and Burman Family Office which had put forward an offer of Rs.156 per share which amounts to Rs.1,250 crore investment in Fortis.
Last week, Fortis got 2 offers – one revised offer from Manipal Health Enterprises Pvt Ltd (MHEPL) and another joint-binding offer from Hero Enterprise Investment Office and Burman Family Office. From the previous deal of Rs.5,003 crore investment, Manipal has offered a revised deal of Rs.6,061 crore investment at Rs.155 per share. TPG Capital and Manipal Hospitals will acquire the Fortis hospital business along with a 20% stake in SRL Ltd, a diagnostics chain. The acquisition is a Rs.3,900 crore deal.
On Monday, 16 April 2018, Fortis Healthcare announced that the board will take a decision regarding the various investors and their investment offers. The board will take into account the best interests of the shareholders, employees, and the company when determining its future course of action.