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Manipal-TPG revises its bid for Fortis, offers to invest Rs 2,100 crore

In the new offer, Manipal-TPG has valued Fortis at Rs 8,358 crores and shown interest to invest Rs 2,100 crore into Fortis at a share price of Rs 160. Earlier, Manipal-TPG had valued FHL at Rs 6,322 crore.

Fortis Healthcare Limited or FHL has received a revised offer from Manipal and TPG, the company informed in a filing to BSE. In the new offer, Manipal-TPG has valued Fortis at Rs 8,358 crores and shown interest to invest Rs 2,100 crore into Fortis at a share price of Rs 160. Earlier, Manipal-TPG had valued FHL at Rs 6,322 crore.

Manipal-TPG in its revised offer said that the FHL group has short term liquidity concerns and needs funding for repayment of existing loans and payments. "In view of the same, Manipal-TPG will -by way of preferential allotment- subscribe to equity shares of FHL for an amount of Rs 2100,00,00,000 for a price per equity share of Rs 160," the company said.

"It is clarified that the Preferential Allotment is being undertaken only to provide immediate liquidity to FHL by way of a minority investment in FHL. The Preferential Allotment and the ability to appoint directors as aforesaid, shall not vest control in the Subscriber(s) and accordingly, no open offer is required to be made," the revised offer said.

Manipal-TPG has also offered to merge the company into FHL. For the purposes of the merger, Manipal-TPG valued FHL at Rs 8,358 crores and Manipal Health Enterprises or MHEPL at Rs 6,070 crores. A value of Rs 8,358 crores for FHL shall translate into a per share value of Rs 160 per equity share, the letter said.

Upon the merger becoming effective, the shareholders of MHEPL as on the record date (to be fixed for purposes of the Merger) shall be issued equity shares in FHL in accordance with the swap ratio for the Merger, it added.

The new offer is binding and remains valid for acceptance by the FHL board till May 15, 2018.

Fortis has appointed a two-member expert advisory committee to review the proposals. FHL board will meet on May 10 to take a decision on the binding bids as recommended by the expert advisory committee.

Four entities -- KKR-backed Radiant Life Care, Malaysia-based IHH Healthcare, Manipal-TPG consortium and Munjal and Burman family offices -- have given their binding offers for the Healthcare chain.

Among the bidders who have submitted their revised offers are Munjal-Burman and Manipal-TPG. Earlier this month, Munjal-Burman presented the FHL board with a revised investment proposal to invest Rs 1,800 crore directly, without any due diligence.