Fortis Healthcare sale: Manipal refuses to back-off from fight, makes fresh offer
Barely days after, the Fortis Healthcare Board took a decision to go ahead with Hero Enterprise Investment Office-Burman Family Office offer, the consortium of Manipal Health Enterprises (MHE)-TPG Capital is yet to give up.
Barely days after, the Fortis Healthcare Board took a decision to go ahead with Hero Enterprise Investment Office-Burman Family Office offer, the consortium of Manipal Health Enterprises (MHE)-TPG Capital is yet to give up. They have now come up a revised offer at Rs 180 per share, the highest till now.
MHE-TPG’s latest offer has valued Fortis Healthcare at Rs 9,403 crore and Rs 6,070 crore for Manipal’s chain of hospitals.
The previous four offers by MHE-TPG had valued Fortis at Rs 8,358 crore, Rs 6,322 crore, Rs 6,061 crore and Rs 5,003 crore, respectively.
In their modified offer letter, MHE-TPG has justified their revised offer by stating, “We have been following the developments of the past few days after the announcement by FHL and have observed, through media reports, the negative reaction of the FHL shareholders to the decision of FHL Board to accept the Nero and Burman Offer. We also believe that, unlike our offer, the Hero and Burman Offer only partially solves the short term liquidity concerns of FHL and fails to deliver any long term benefits to FHL or solve the larger issues facing FHL…”
On April 20, DNA Money had reported how half the shareholders are in unison and do not want a ‘raw deal’.
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The only difference is that earlier the sentiments were against MHE-TPG, and now they are against Munjals-Burmans. Even MHE-TPG is of the opinion that getting 75% shareholders’ nod for Munjals-Burmans “is likely to be very challenginig for the FHL Board.”
As per DNA Money’s earlier report, around 45% of the shareholding is in unison. The known institutions and individuals are East Bridge Capital, National Westminster Bank (Jupiter Asset Management), Rakesh Jhunjhunwala, Radhakishan Damani, among others.
Sources told DNA Money that a major chunk of foreign institutional investors barring Goldman Sachs too are opposed to MHE’s revised offer. The FIIs which are opposing the MHE offer include MSD India, UBS Principal Capital, Societe Generale, BNP Paribas Arbitrage, Blackrock and others.
By Ateeq Shaikh, DNA Money