Mumbai, Jul 13: The world’s largest healthcare group by market capitalisation, IHH Healthcare Berhad, has emerged as the winner in the race to acquire India’s second largest healthcare network Fortis Healthcare Ltd (FHL) by outbidding the other contender, TPG-Manipal combine. IHH will invest Rs 40 billion at Rs 170 per share through preferential allotment of shares, FHL said in an early morning statement on Friday.
The four-month-long bidding war for Fortis has seen interest from both domestic and international suitors. IHH’s offer is at a 19.5 per cent premium to FHL’s closing price on Thursday on the bourses. Northern TK Venture Pte Ltd, Singapore, a unit of IHH, will be issued 235.3 million new shares of FHL through a preferential allotment that would give a roughly 31 per cent of the company’s total voting equity share capital.
IHH will make a mandatory open offer to shareholders for 26 per cent of the outstanding shares post-issuance. This will take IHH’s shareholding in the company up to as much as 57 per cent.
The transaction is subject to shareholder and Competition Commission of India (CCI) approval.
Fortis said that the proposal provides for refinancing of debt to the extent of Rs 25 billion. Funds infused would be used towards completion of the acquisition of the assets of RHT (that owns some of Fortis hospitals’ assets) and also buy out the stake of PE investors in SRL, as well as to address short-term liquidity needs. A mandatory open offer for public shareholders of Fortis Malar Hospitals would be made at a price determined under Regulation 8 of the SAST Regulations, the company added.