New Delhi: Malaysian firm IHH Healthcare Bhd has extended the validity of its enhanced revised proposal for acquiring Fortis Healthcare Ltd to 30 June, following the reconstitution of the Indian healthcare company’s board early this week.
IHH Healthcare’s offer to invest up to Rs7,400 crore into Fortis for a stake of over 50% is now valid until 30 June, Fortis told BSE on Friday. The previous offer was valid till 29 May.
“In order to enable the reconstituted board to fully consider and evaluate our proposal, we now extend the acceptance period of the enhanced revised IHH proposal until 11.59 pm on June 30,” IHH Healthcare said in a letter to the board of directors of Fortis Healthcare as intimated to the stock exchange.
IHH Healthcare had revised its offer to directly invest in Fortis at Rs175 per share on 1 May from an initial non-binding offer of Rs160 per share.
On Wednesday, the Manipal-TPG consortium extended the validity of its revised bid for troubled Fortis to 6 June for approval of its board and 20 July for shareholder approval. The consortium raised its offer, proposing to infuse Rs2,100 crore at Rs180 per share compared with Rs160 per share earlier.
The extension by Manipal Health and IHH follows the reconstitution of the Fortis board, which saw the resignations of Harpal Singh, Sabina Vaisoha and Tejinder Singh Shergill on 20 May. The fourth director, Brian Tempest, was removed on 23 May after shareholders approved a resolution to remove him from the board and appoint three new directors at its extraordinary general meeting (EGM).
The EGM was sought by a group of minority shareholders—Eastbridge Capital and Jupiter India—which together control about 12% of the company. They alleged the directors had failed to work in the interest of all shareholders, particularly in the way they handled offers for the cash-starved hospital chain.
The Malaysian healthcare chain is among four suitors for Fortis, the others being businessmen Sunil Munjal and Anand Burman, who have submitted a joint bid, TPG Capital-backed Manipal Health and KKR-backed Radiant Life Care.livemint