Hero, Dabur offer to invest Rs 1250 cr in Fortis Healthcare

Hero, Dabur offer to invest Rs 1250 cr in Fortis Healthcare

Malaysia's IHH Healthcare has joined the race to acquire India's troubled Fortis Healthcare, offering to acquire shares at up to Rs 160 apiece, higher than Manipal Health Enterprises' offer of Rs 155 per unit by valuing the company at Rs 6,061 crore.

Manipal Hospitals Enterprises Private Ltd on Tuesday raised its offer to Fortis Healthcare's hospital business by about a fifth in an attempt to win over minority shareholders opposed to the deal.

In a regulatory filing, Fortis Healthcare (FHL) said the offer from Munjals and Burmans includes a Rs 500 crore binding offer immediately and Rs 750 crore post-diligence to be completed within three weeks.

IHH letter, which was made public by Fortis on Friday, said that its request for due diligence primarily stemmed from the inability of the statutory auditors of the company to opine on its financial position as at December 31, 2017, and regulatory investigations that were now under way.

Its proposal "can be implemented in a fairly short period of time and will allow the company to focus on stabilising operations and on growth", they said.

Utilisation of proceeds from this funding shall only be for the purposes of payment of employee dues, repayment of loans which have matured and payment of pressing creditors and to monitor these, a board seat shall be given to investors, it added.

On Thursday, Sunil Kant Munjal-led Hero Enterprise Investment Office and Burman Family Office had also offered to invest Rs 1,250 crore in the healthcare chain at up to Rs 156 per share.

The Fortis sale has been delayed due to the legal cases against its founders, brothers Malvinder and Shivinder Singh, who lost control of the healthcare firm after their stakes plunged to low single digits.

"We confirm you that on April 11 2018 the Board of Directors of the Company have received an unsolicited non-binding expression of interest from IHH Healthcare Berhad for possible due diligence and participation with the Company", according to an communication sent by FHL to the National Stock Exchange and BSE on Friday. If Fortis board rejects the approach, IHH will consider taking its offer directly to the company's shareholders, according to the people. IHH declined to comment today and Fortis did not respond to a request for comment.