Manipal-TPG sweetens bid for Fortis to Rs 180

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.



Related Posts

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.

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.

Tepper expected to sign deal to buy Panthers
If an agreement is set, the owners can make the sale official with a vote at next weeks owners meeting in Atlanta, GA. At $2.2 billion, the sale of the Panthers would be the highest anyone has paid for an National Football League team.

RIA Novosti Ukraine news network suspected of taking orders from Russian Federation
Press Secretary of the President Dmitry Peskov commented on the searches, the SBU in the office of RIA Novosti - Ukraine. In March 2015, 115 Russian media outlets were suspended accreditation by Ukrainian authorities.

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.

Mario Tennis Aces Test Dates Announced
Starting June 1, you will be able to download the demo and compete in some online gameplay against others. Additionally, the Pre-Release Online Tournament will be different than the full game's Online Tournament.

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.

Damon Wayans slams Clayne Crawford after Lethal Weapon star is axed
Wayans has since made his Twitter account private, but ConsquenceOfSound managed to grab screenshots before that. The sticker has words that read, "Clayne Crawford Is An Emotional Terrorist".

Jared Kushner Says Gaza Protesters Are 'Part of the Problem'
Ambassador to Israel David Friedman photographed during the opening ceremony of the new USA embassy in in Jerusalem , Monday, May 14, 2018 .

Dave Grohl and daughter Violet (12) team up for incredible Adele cover
Let's hope the Learn To Fly rockers stays safe on ground in time for the band's United Kingdom stadium dates this summer. Finally, the night wrapped up with all three Grohls delivering a set-closing cover of Queen's "We Will Rock You".

© 2015 ExpressNewsline. All Rights reserved.