NEW DELHI, India India’s cash-strapped Fortis Healthcare Ltd, which has attracted interest from Malaysia’s IHH Healthcare Bhd, said on Tuesday it is reopening the bidding process for sale to potential investors.
IHH and two other bidders a consortium of the Hero Enterprise Investment Office and the Burman Family Office, and a consortium of private equity firm, TPG Capital and Manipal Health Enterprises, have been invited to participate in the process.
The three suitors were among the five groups that had submitted their proposals for investing in the ailing Indian hospital chain in a previous bidding contest.
The Fortis board had earlier this month accepted an investment proposal with a 5-3 majority from the Munjal-Burman combine, but it wasn’t well-received by shareholders and four of the eight directors later quit.
The decision to launch the fresh bidding process was taken by the reconstituted board after a meeting on Tuesday.
The company earlier received the Hero-Burman group’s consent to restart the bidding process.
Fortis said other interested parties are also invited to submit an expression of interest by May 31.
The deadline for submitting binding bids is June 14.
The invited and other shortlisted bidders will be given 10 days for financial and legal due diligence, Fortis said.
Among the bid conditions, bidders are required to make a minimum investment of 15 billion rupees by way of preferential allotment.
IHH said on Monday it expected to acquire 34-35 per cent of the Indian hospital group if its proposal was accepted.
“Ideally, 51 per cent will be great. The reality is, we could end up with 34-35 per cent (shareholding) but at least we could drive the company and (we) would have a say in board decisions,” Managing Director and Chief Executive Officer Tan See Leng told reporters after the company’s annual general meeting.
Source: NAM News Network