Suitors do not seem to give up on Fortis Healthcare. IHH Healthcare Berhad, Asia’s largest healthcare network, has again come up with an offer for the Indian hospital chain, this time for Rs 4,000 crore, while KKR-backed Radiant Life Care too has made its second offer. This is the third offer by the Malaysian player, after the earlier two were turned down by the Indian hospital chain.

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The latest proposal, submitted on Tuesday, offers immediate equity of Rs 650 crore “without any due diligence” through preferential equity shares at the rate of Rs 160 each in lieu of two seats on the Board. However, there are riders attached to this immediate infusion of capital. IHH Healthcare has asked for “immediate” access to do legal and financial due diligence for subsequent equity infusion.

This Rs 650 crore would be paid towards dues to employees and creditors apart from servicing the debt.

The subsequent Rs 3,350 crore will be post satisfactory due diligence in a period of three weeks. For the due diligence, IHH Healthcare has sought access to not only the data room of Fortis Healthcare, but also to the auditors - Deloitte and Luthra & Luthra - “in connection with the ongoing investigations into the Company”.

In its fresh offer, Radiant would buy Fortis Mulund Hospital for Rs 1,200 crore, a binding offer without due diligence. This would help in providing Gurugram based healthcare network an immediate liquidity. This part of the proposal is binding, while the rest is non-binding component.

“We propose a demerger of the hospital business from Fortis Healthcare into a ‘NewCo’, excluding Fortis Healthcare’s stake in SRL. We would launch an all-cash open offer to shareholders of NewCo at a price of Rs 126 per share of NewCo,” read their offer letter.It is offering to buy Fortis Mulund Hospital for Rs 1,200 crore, a binding offer without due diligence.

Fortis’s management has formed an advisory committee to look into offers that are “binding” and “do not require due diligence”. Though IHH Healthcare’s revised offer is “binding”,  it has also sought “due diligence”, thus, it is uncertain if it will be entertained by the panel headed by PwC ex-chairman Deepak Kapoor and the management.

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The offer reads that the revised proposal, “without any element of restructuring or alienation of assets or convertible instruments, is primarily an appropriately sized cash infusion ino the company that comprehensively addresses the short-term financing needs as well as ensures liquidity for strategic and long-term objectives of the company.”

If this bid is again rejected by Fortis, IHH Healthcare may spring up a surprise for the management by coming up with a hostile bid by taking shareholders into confidence through an open cash offer.

On Friday, KKR-backed Radiant Life Care too had extended an offer to Fortis Healthcare of Rs 165 per share for a 26% stake.

Earlier, TPG Capital backed Manipal Health Enterprises had submitted a bid of Rs 136, which was later revised to Rs 155. The revised offer valued the hospital business at Rs 6,061 crore from the earlier Rs 5,003 crore.

Even the Munjal-Burman duo updated their proposal to infuse Rs 1,500 crore at the price of Rs 156 per share for preferential issue of equity shares and Rs 161.60 for preferential issue of warrants. The earlier two rejected bidders Fosun Health Holdings and IHH Healthcare Berhad had offered Rs 156 and Rs 160 per scrip, respectively. Fosun Health Holdings wanted to invest $350 million (about Rs 2,300 crore) into Fortis Healthcare.

At the moment, the advisory committee is analysing the two bids of Munjal-Burman and Manipal Health Enterprises. It is slated to finalise the report on Wednesday so that Fortis Healthcare’s Board can pick the best option on Thursday.

Source: DNA Money