IHH sweetens offer for India's Fortis in bidding war

Private healthcare operator IHH Healthcare has revised its bid for cash-strapped Fortis Healthcare, which runs about 30 hospitals in India.

This deal sweetener comes amid a bidding war with four other entities looking to secure a stake in India's second-largest hospital chain.

Singapore-listed IHH Healthcare yesterday said its proposal for an immediate equity infusion of 650 crore rupees (S$130 million) will now be priced at 175 rupees a share, a 9.4 per cent premium from the 160 rupees apiece proposed in April.

A subsequent round of equity infusion for up to 3,350 crore rupees will also be at a share price not exceeding 175 rupees. However, this subsequent equity infusion will be subject to due diligence, and the "execution of mutually acceptable binding definitive documents", IHH Healthcare said in an exchange filing.

IHH Healthcare, which is Asia's largest private healthcare operator, noted that the revised terms of its proposal will be withdrawn if it does not hear from Fortis by May 15.

The other parties vying for a piece of Fortis are TPG backed-Manipal Hospital, the Munjal and Burman families, China's Fosun International, and KKR-backed Radiant Life Care.

Tuesday was the deadline for the binding offers, which will be evaluated by an expert advisory committee. The Fortis board is due to meet on May 10 to review the committee's recommendations.

IHH Healthcare shares ended unchanged at $2.04 yesterday.

A version of this article appeared in the print edition of The Straits Times on May 03, 2018, with the headline 'IHH sweetens offer for India's Fortis in bidding war'. Print Edition | Subscribe