IHH Healthcare revises bid for Fortis, offers ₹650 crore for immediate infusion

IHH said it plans to infuse the amount via a preferential issue and allotment of shares at Rs160 per share for which it would be given the right to appoint two directors on Fortis board

Malaysia’s IHH Healthcare Berhad on Tuesday revised its proposal for Fortis Healthcare Ltd, making a binding proposal for about a fifth of its offer value, as the battle for takeover of Fortis escalates.

Fortis, which confirmed the receipt of IHH’s revised offer, has received as many as five offers for control of its hospital business. (Parveen Kumar/Hindustan Times)

The revised offer includes a binding proposal for an immediate infusion of ₹650 crore ($98.0 million).

IHH plans to infuse the amount via a preferential issue and allotment of shares at Rs160 per share for which it would be given the right to appoint two directors on Fortis board, IHH said.

The non-binding part of the proposal is for subsequent infusion of up to ₹3350 .

Earlier this month, IHH, one of Asia’s largest healthcare operators, said it was ready to infuse ₹4000 crore, at up to 160 rupees per share.

Fortis, which confirmed the receipt of IHH’s revised offer, has received as many as five offers for control of its hospital business. Rival hospital operator Manipal Healthcare Enterprises Pvt Ltd and a consortium of two prominent Indian business families have submitted a binding bid and an investment offer, respectively.