Fortis gets revised offer from rebuffed IHH Healthcare

With the competition for Fortis takeover getting higher, Malaysia’s IHH Healthcare Bhd has revised its proposal for India’s Fortis Healthcare Ltd, making a binding proposal for about a fifth of its offer value, as the battle for the takeover of Fortis escalates.

The revised offer includes a binding proposal for an immediate infusion of 6.50 billion rupees ($98.0 million).

IHH plans to infuse the amount via a preferential issue and allotment of shares at 160 rupees per share for which it would be given the right to appoint two directors on Fortis board, IHH said.

The non-binding part of the proposal is for subsequent infusion of up to 33.50 billion rupees.

Earlier this month, IHH, one of Asia’s largest healthcare operators, said it was ready to infuse 40 billion rupees at up to 160 rupees per share.

Fortis, which confirmed the receipt of IHH’s revised offer, has received as many as five offers for control of its hospital business. Rival hospital operator Manipal Healthcare Enterprises Pvt Ltd and a consortium of two prominent Indian business families have submitted a binding bid and an investment offer, respectively.

China’s Fosun International (0656.HK) and KKR-backed Radiant Life Care Private Ltd are the other suitors.