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Fortis Board Approves Binding Bid From Malaysia’s IHH Healthcare

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The board of Fortis Healthcare Ltd. approved Malaysian healthcare major IHH Healthcare's binding offer for equity infusion of Rs 4,000 crore after it outbid the only other competing offer on the table from TGP-backed Manipal Hospitals.

Fortis had received binding bids from Malaysia’s IHH Healthcare and Manipal-TPG combine on July 3, the last day of submission of a fresh round of bids called by a newly constituted board. The Munjals-Burmans combine, which had earlier emerged as the preferred suitor for Fortis Healthcare, and Radiant Life Care had backed out.

Here's the company's rationale for approving the bid.

  • Significant primary funds infusion at highest available bid price (Rs 170 a share).
  • Offers significant deal certainty given a simpler transaction structure and requirement for fewer approvals and a shorter time frame.
  • Exit opportunity for shareholders given the open offer, in case they desire.
  • Offers potential to achieve scale driven synergies on operational and financing front.
  • Integrates Fortis into a large global healthcare platform with potential synergies.

This is a developing story.

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