IHH, South-East Asia
NEW DELHI: India's cash-strapped Fortis Healthcare Ltd has accepted an investment offer from an Indian consortium in their bids to invest in Malaysia's IHH Healthcare Bhd
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Fortis said its board, on Thursday, accepted the joint offer from Hero Enterprise Investment Office and Burman Family Office that had proposed to invest 18 billion rupees (RM1 = 17.03 rupees) in the ailing hospital chain.
“The recommendation of the board would be put before the shareholders for their approval,” it said.
Fortis said it picked the Hero-Burman offer after considering inputs from an independent expert advisory committee set up last month to evaluate the bids.
Other companies bidding for the hospital chain, which operates 30 hospitals in India, included private equity group KKR-backed Radiant Life Care, a consortium of Manipal Hospitals and buyout firm TPG Capital, and China's Fosun International.
Growing spending in India's private healthcare sector had drawn the suitors to Fortis, one of India's well-known brands.
Hero and Burman proposed to invest eight billion rupees immediately through a preferential share issue at 167 rupees per share and a further 10 billion rupees through preferential issue of warrants at 176 rupees per warrant.
IHH Healthcare in its revised offer had said it would make an immediate equity infusion at 175 rupees per share and a subsequent equity infusion at a per share price not exceeding 175 rupees.
The Malaysian group had earlier proposed injecting 6.5 billion rupees into Fortis immediately and 33.5 billion rupees after due diligence.
The Indian consortium and IHH Healthcare had submitted their revised binding bids on May 1.- Bernama
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