Fortis Healthcare Ltd, the country's second-largest hospital chain operator headquartered in Delhi, said on Sunday that it has received revised offer from TPG-backed Manipal Health Enterprises Pvt. Ltd.
In its latest offer Manipal will infuse Rs 2,100 crore by subscribing to equity shares of the company at Rs 160 per share.
Key highlights of new offer by Manipal:
- TPG-backed Manipal proposes to merge into Fortis that will value the latter at Rs 8,358 crore translating into Rs 160 rupees a share.
- The offer values Manipal at Rs 6,070 crore, according to a letter dated May 6 from Manipal to the Fortis board, attached to the filing.
- Manipal offers to subscribe to Rs 2,100 crore of shares of Fortis via a preferential allotment at Rs 160 apiece; proceeds to be used by Fortis to repay existing loans, meet working capital requirements and partly fund acquisition of assets from RHT.
- Manipal to buy stake in SRL Ltd. held by private equity firms at a price that values the subsidiary at Rs 3,600 crore.
- After the merger, Fortis will undertake a rights issue to raise additional capital.
- Purchase of RHT assets will also be funded through debt.
- Manipal says new offer doesn’t require any further due diligence; proposal is binding and valid until May 15.
Last week, Hero Enterprise Investment Office and the Burman Family Office hiked its joint proposal to invest Rs 1,800 crore directly in Fortis Healthcare. That bid proposes to invest Rs 800 crore by allotment of equity shares through a preferential issue at Rs 167 per share or as per SEBI Issue of Capital and Disclosure Requirements guidelines, whichever is higher, Fortis Healthcare said in a BSE filing.