Malaysia's IHH Healthcare Bhd has made a proposed offer for Fortis worth US$1.3 billion, while smaller local rival Manipal Health Enterprises Pvt Ltd, has made an offer of about $1.2 billion.
PETALING JAYA: Uncertainty over potential future provisions on Fortis Healthcare Ltd has got analysts turning cautious on IHH Healthcare Bhd
. Kenanga Research, in a note, said it remains cautious on Fortis in terms of additional findings which could pose risks in terms of provisions.
It added that moving forward, IHH faces tough operating conditions due to the uncertain Turkish Lira and execution risk at Fortis as well as uncertainty over its turnaround timeline. This comes on the back of an analyst briefing held by IHH to dispel investors’ concerns with regards to auditors’ latest qualified opinion on its 31.1% stake in Fortis.
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