Chinese conglomerate Fosun International is the latest in a long line of companies that want to strike a deal with the troubled Fortis Healthcare Ltd.
Fosun, through wholly owned subsidiary Fosun Health Holdings Ltd., has offered to inject Rs 100 crore within the next 45 days that includes an option of immediately subscribing to convertible debt instruments of the company, according to the stock exchange filing. That’s on the condition that Fortis agrees to a one-month period of exclusivity for Fosun to undertake due diligence and negotiate a proposal to acquire stake in the company.
If Fortis agrees to the exclusivity period, Fosun will consider a primary infusion of up to $350 million (approximately Rs 2,300 crore) at a price of Rs 156 per share that “shall not enable Fosun to hold 25 percent or more securities of Fortis”, the filing said. That’s inclusive of the Rs 100 crore that the company proposes to inject earlier.
This is the fourth offer that India’s second largest hospital chain has recieved since its founders Malvinder and Shivinder Singh stepped down following allegations of siphoning funds. Earlier, Manipal Health Enterprise Pvt Ltd, IHH Healthcare Bhd. and the Munjal and Burman families have made rival offers to Fortis. The company has already responded in the negative to IHH’s offer citing the “binding agreement” with TPG-backed Manipal. It is reviewing the remaining offers, Fortis said today.
“We are aware of the company’s near-term cash requirements, strategic plans for consolidation of its real estate assets, and various alternative proposals put forth to the Board's consideration,” Fosun said in its non-binding expression of interest. It added that its proposal is a "fair valuation to optimise long term returns".
What Shareholders Are Getting
- Fosun: Rs 156 per share
- Manipal Health: Rs 156 per share
- Munjal-Burman families: Rs 156 per share
- IHH Healthcare: Rs 160 per share