India's Fortis reopens bidding for hospital business

The move comes after FHL and a consortium comprising Hero Enterprise Investment Office and the Burman Family Office mutually agreed to terminate a bid that FHL accepted earlier this month. The Hero-Burman consortium, which had offered to invest INR18 billion ($265 million), was one of several participants in the original bidding process, along with MHEPL, Malaysia-based IHH Healthcare, China's Fosun International and KKR-backed Radiant Life Care.

Following FHL's acceptance of the Hero-Burman offer, IHH and MHEPL both indicated their continued interest in the hospital asset, with MHEPL citing reports of dissatisfaction among FHL's shareholders with the Hero-Burman bid. As a result, FHL has requested revised bids from all three investors by May 31. Other interested parties have also been invited to submit expressions of interest by the same day; FHL will decide on a shortlist of these bidders by June 1.

Conditions for binding bids include a minimum investment of INR15 billion by preferential allotment, funding for FHL's planned acquisition of Singapore-based RHT Health Trust, and an exit for PE investors in FHL's diagnostics subsidiary SRL. The winning bidder must also commit to retain current management and employees. Invited and shortlisted bidders will be provided 10 days for financial and legal due diligence.

FHL's hospital chain is the second-largest in India, with 45 healthcare facilities either operational or under development. It also operates over 370 diagnostic centers through SRL. The company's total revenue came to INR47 billion for the year ended March 2017, up from INR44 billion the year before. Over the same period, net profit grew from INR418 million to INR4.8 billion.

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• Topics
• South Asia
• Healthcare
• Buyouts
• Trade sale
• India
• TPG Capital
• Exit
• KKR