Manipal-TPG combine revises Fortis bid

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CHENNAI, APR 25,
Manipal-TPG combine has submitted a revised unsolicited binding offer for Fortis Hospitals Ltd.
The offer includes a revised proposal for buying the hospital business and diagnostic arm, SRL.
The move comes a day before an expert committee is expected to review binding offers for Fortis and make appropriate recommendation to Fortis board.
Interestingly enough, bidders who have initially made a non-binding offers have return to include a binding component in their revised proposals.
According to the revised offer of Manipal-TPG combine, which was made public by Fortis late night on Tuesday, the consortium has hiked the premium offered over and above the equity valuation for Fortis Healthcare’s hospital business to ? 1,319 crore from ? 1,058 crore earlier.
This would result in an equity value of ?6,322 crore being attributed to the Fortis Healthcare hospital business, an increase of 4.31% from Manipal-TPG’s last offer of ?. 6,061 crore on April 10, according the revised offer letter to Fortis board.
The combine has now also offered to buy up to 5% of the paid-up capital of SRL from Fortis at the same price as it will buy from private equity investors of SRL. It will buy the stake from private equity investors of SRL for ? 11134 crore, it added.
In return, Manipal-TPG combine has also sought for controlling 51% of voting rights in SRL along with Fortis and also majority representation on SRL’s board. It has also sought limited veto rights pertaining to certain matters of SRL.
Manipal also said that it did not have any objection to the merger of Fortis and SRL subsequently provided all pending investigations into Fortis and other entities were completed without any adverse implications, including any reputational damage.
Malaysia’s IHH Healthcare Bhd and KKR-backed Radiant Life Care revised their proposals by adding in partly binding components to their offers on Tuesday. Hero Enterprise Investment-Burman Family Office combination, which too has revised binding bid, and China’s Fosun are also in the fray.

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