NEW DELHI: Two of the parties interested in buying Fortis Healthcare, IHH Healthcare and Munjal-Burmans, on Tuesday revised upwards their offers for the healthcare chain ahead of the deadline set by its board for submission of binding bids.
The Munjals and Burmans said they would increase their investment to Rs 1,800 crore, without any due diligence, from a previous offer of Rs 1,500 crore.
In their revised offer, the duo proposed to invest Rs 800 crore through a preferential allotment of equity shares at Rs 167 per share. Further, they offered to invest Rs 1,000 crore via a preferential issue of warrants priced at Rs 176 per share or as per Sebi ICDR guidelines, whichever is higher.
Earlier in the day, IHH raised its bid by 9.4 per cent to Rs 175 per share, compared to its earlier quote of Rs 160 per share, while retaining the other proposals from its previous offer, made on April 24. Earlier, IHH had proposed to immediately infuse Rs 650 crore in the Indian firm as part of an overall proposal to invest Rs 4,000 crore.
“We, as a long-term strategic investor, are best placed to fund, guide, support and drive the company forward to realize its potential to the fullest and generate value for all stakeholders,” IHH said in a letter. Munjal-Burmans, in their offer letter, said that the exercise of the warrants by them will be timed in a manner that enables the company to meet its liquidity requirements.
The duo also proposed the sale of Fortis’ diagnostic arm SRL to fund the buyout of hospital assets under the Singapore-listed firm RHT.
They added that if the SRL sale proceeds were insufficient, the shortfall would be funded through a rights issue.
The change in the offers
Munjals and Burmans would increase their investment to C1,800 crore, without any due diligence, from a previous offer of C1,500 crore
IHH raised its bid by 9.4 per cent to C175 per share, compared to its earlier quote of C160 per share