People move through the corridor of a patient ward. (Photographer: Prashanth Vishwanathan/Bloomberg)

TPG-Backed Manipal Health Revises Binding Offer For Fortis

TPG-backed Manipal Healthcare Enterprises Pvt. Ltd. revised its binding offer for Fortis Healthcare Ltd., as the latter's board meets this week to decide on the final bidder for India's second-largest hospital chain.

Also read: Is The Fortis Board Focused On Value Maximisation?

TPG-Backed Manipal Health Revises Binding Offer For Fortis

The new offer comes the after KKR-backed Radiant Life Care Pvt. Ltd. and Malaysia’s IHH Healthcare Bhd revised their offers to make a binding bid within the last 24 hours.. Last week, the Fortis board had set up an advisory panel to evaluate only binding offers for its healthcare and diagnostics business. A binding offer is made by a bidder to acquire a target company after the due diligence phase of a sale process is complete.

Manipal has also proposed a Fortis Health and SRL merger post the initial demerger. Manipal and TPG will then make an open offer to shareholders of the new company at not less than Rs 121 apiece. Post the deal, Fortis will retain a majority stake. However, 51 percent of the voting rights will be with Manipal.

At least five investor groups are eyeing to takeover Fortis after its founders Malvinder Singh and Shivinder Singh stepped down from the board amid allegations of siphoning funds.

The troubled healthcare company has also received binding offers from KKR-backed Radiant Life Care Pvt. Ltd., and Burman and Munjal families. Chinese conglomerate Fosun Internationalis also in the fray but with a non-binding proposal.

Also read: Fortis Should Go to Bed With the Manipal Bid