Manipal, TPG improve offer for India's Fortis Healthcare

It extends a bidding contest with KKR-backed Radiant Life Care, which has made a non-binding offer of INR101 billion for the company. Last month MHEPL revised its initial offer of INR39 billion to INR61 billion citing concerns raised by some FHL shareholders around the proposed valuation of a unit called Fortis Hospitals.

According to a release, MHEPL will attempt to address short-term liquidity concerns at FHL by increasing its offer from INR116 per share to INR160 per share while injecting INR21 billion into the company through a preferential allotment. FHL debt includes loans related to the acquisition of a portfolio of Indian assets from Singapore's Religare Health Trust for INR46.5 billion.

FHL has also received a binding offer from a consortium comprising Hero Enterprise Investment Office and Burman Family office. This consists of a direct investment of INR15 billion in FHL, up from a previous offer of INR12.5 billion comprising INR5 billion up front and INR7.5 billion following due diligence.

Non-binding offers have also been made by Malaysia-based IHH Healthcare and China's Fosun International. Fosun's bid comprises a INR10 billion upfront investment, followed by a commitment of up to $350 million for newly issued shares following due diligence, while IHH has offered INR40 billion through a preferential allotment of equity shares.

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
• India
• TPG Capital
• Exit
• KKR