Manipal-TPG sweetens bid for Fortis to Rs 180

Share
Manipal-TPG sweetens bid for Fortis to Rs 180

MHL said that the new offer shall remain valid for acceptance by the FHL board till May 29. If so, Fortis' agreement with Manipal-TPG may possibly stand: there is an Implementation Agreement that has been signed by the Fortis board.

To remind you, FHL had received four binding bids, from Malaysia's IHH Healthcare Berhad, Manipal-TPG and KKR-backed Radiant Life Care apart from the winning bid. They opined that their bid offers the highest price and most comprehensive solution, addressing the short term liquidity requirements and long term strategic objectives of the company.

Manipal/TPG have claimed that their offer is significantly better than any other offer received by the board including Munjal/Burman. Hero-Burman had offered to infuse ₹800 crore via a preferential allotment of equity share valued at ₹167 a scrip. According to the daily, both advisers had opined that seeking time for diligence was not a big enough risk - after all, IHH had already done a detailed analysis of the company a year ago before the legal tussle with Daiichi Sankyo threw a spanner in the works. If shareholders approve the recommendation, it effectively ends the bidding war over Fortis, which has intensified in the past month as suitors enhanced their respective offers in order to outbid others.

The issues include FHL's payment obligations for the acquisition of the relevant Indian entities from RHT and the exit required to be provided by FHL to the private equity investors in SRL, it added.

Comments from the Munjal-Burmans combine could not be immediately obtained.

Hours after Business Today reported how fissures in the Fortis Healthcare Ltd boardroom have widened further after the recent selection of top bidder - Munjal-Burman combine - didn't go down well with FHL's independent directors, the bidding war in acquiring cash-strapped Fortis seems to be on with Manipal-TPG combine revising its offer to Rs 180 per share from its earlier offer of Rs 160 a piece, which is 8 per cent higher than the current victor Munjal-Burman combine, on Monday. The board itself was also not unanimous, but had a majority in their decision.

The advisors had found the Munjal-Burman bid the best in terms of deal certainty, with low structural complexity and no due diligence. There is a likelihood that shareholders will not support the decision however, as we view the chosen offer as less compelling compared with IHH's and Manipal's. They have also sought three board seats in Fortis. National Westminster Bank Plc as trustee of Jupiter India Fund and East Bridge Capital Master Fund, which together hold a 12.04 per cent stake in FHL, have accused these directors of failing to maintain corporate governance and fairly represent interests of all shareholders.

Fortis late on Thursday said it planned to accept an offer from Hero Enterprise Investment Office (controlled by the Munjals) and the Burman Family Office that would invest Rs1,800 crore (266.5 million), valuing Fortis at Rs9,000 crore, subject to shareholder approval. In fact, the investors plan to call for fresh bids for the hospital chain if the board members are replaced.

Share

Advertisement

Related Posts

Fujifilm SQ6: The First Analog Square-Format Instax Camera
The double exposure mode is capable of superimposing two images onto a single film when the shutter button is pressed twice. To celebrate the camera's release, Fujifilm and iHeart Radio will be holding a joint event in New York City on May 15.

Jaitley undergoes kidney transplant surgery successfully
Ill-health had led to the minister cancelling his official trips to London and Washington last month. Doctors from AIIMS say the minister could take at least six to eight weeks for full recovery.

Women's Group Demands Spotify to Remove Chris Brown, Nelly from Playlists
The letter then identifies eight alleged abusers in particular, though notes it is by no means a comprehensive list. UltraViolet are hoping that Spotify's new policy will expand to other platforms.

Record Number of STDs Diagnosed in California In 2017
According to the CDC, most people with chlamydia don't have symptoms, or those symptoms may not appear for several weeks. Chlamydia cases have reached the highest number in almost three decades, with 218,710 new cases reported a year ago .

Jammu and Kashmir: BSF jawan martyred in ceasefire violation by Pakistan
There was a lull in firing noted along the IB in the past 3 months after intense border skirmishes in January and February. Meanwhile, Prime Minister Narendra Modi is scheduled to visit Jammu and Kashmir on May 19.

Germany slam Ozil and Gundogan over photos with Turkey's Erdogan
Arsenal's Ozil and Manchester City's Gundogan posed for photos on Sunday in London with President Recep Tayyip Erdogan . Gundogan later said he had not meant to make a political statement or get involved in an election campaign .

Front Row Advisors LLC Purchase Shares of 27922 General Electric (GE)
It operates through Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation, Lighting, and Capital segments. The company reported the earnings of $0.16/Share in the last quarter where the estimated EPS by analysts was $0.11/share.

Brooklyn Nine-Nine: Season Six; FOX & NBC Talk Cancellation & Revival
Earlier on Friday, Fox announced it was reviving Tim Allen's " Last Man Standing ", one year after the show was canceled by ABC . On the other hand, the season 5 finale will feature the highly-anticipated wedding of Amy and Jake Peralta ( Andy Samberg ).

Malaysian PM Mahathir says may be prime minister for one-two years
Numerous senior officials are volunteering information, accompanied of course by documents. Mahathir has barred Najib and his wife from leaving the country.

Google staff resign in protest of continuing military collaboration
According to Gizmodo , Google still hasn't developed a policy document detailing safeguards around its use of machine learning.

© 2015 ExpressNewsline. All Rights reserved.