Race for Fortis Healthcare: Valuation soars in takeover battle

The race for India's second biggest hospital chain operator Fortis Healthcare Ltd is far from over. A look at all the offers and revised bids

Manipal-TPG: Rs 180 apiece
Manipal Health Enterprises Pvt. Ltd, backed by private equity firm TPG Capital, has revised its offer yet again to acquire the hospital business of Fortis through a preferential allotment of shares at Rs 180 apiece, up from the earlier Rs 160. Manipal-TPG will pay Rs 2,100 crore to pick up an 18.4% stake in Fortis.
The new offer values Fortis Healthcare at Rs 9,403 crore compared with its earlier valuation of Rs 8,358 crore on May 6.
Besides, Manipal-TPG will also acquire the 30.93% stake of private equity investors in Fortis' diagnostics arm, SRL, for Rs 1,113.4 crore.

IHH Healthcare: Rs 175 apiece
Malaysia's IHH Healthcare Berhad has submitted a binding offer to infuse Rs 650 crore in Fortis, at Rs 175 apiece, as part of an overall proposal to invest Rs 4,000 crore in the Indian hospital chain. IHH had initially made a "non-binding expression of interest and was willing to pay up to Rs 160 per share.

Munjal-Burma combine: Rs 167 apiece
A consortium of Sunil Kant Munjal of Hero Enterprises and the Burman family of the Dabur group has proposed to make an immediate equity infusion of Rs 800 crore in Fortis at Rs 167 per share through a preferential allotment, besides another Rs 1,000 crore through a preferential issue of warrants at Rs 176 apiece.
The offer also proposed to pick up a strategic stake in SRL Diagnostics unit after divesting Fortis' stake in it.
The Munjal-Burman combine was selected as the winner in the takeover battle by the Fortis board, but the hospital chain's shareholders may not be happy with the development.

KKR- backed Radiant Life Care: Rs 165 apiece
Radiant Life Care Pvt. Ltd, a hospital chain backed by private equity major Kohlberg Kravis Roberts & Co., or KKR, has also raised the pitch after entering the race for the hospital chain with a binding proposal to buy Fortis Mulund for Rs 1,200 crore without any due diligence. The move, it said, would provide immediate liquidity of Rs 680 crore to Fortis.
Radiant plans to demerge Fortis' hospital business and buy a 26% stake in the new entity, which will exclude SRL.
Radiant's offer values Fortis at Rs 165 per share, which includes the Rs 39 per share for SRL. The demerged company will offer shareholders a net value of Rs 126 apiece. The per-share value of the diagnostic unit is based on SRL's estimated value of Rs 3,600 crore.

China's Fosun Health: Rs 156 apiece
Fosun Health Holdings Ltd, a unit of Chinese business conglomerate Fosun International, had made an unsolicited non-binding proposal for a primary infusion of capital of Rs 156 per share to acquire a 25% stake in Fortis. It had offered a total investment of $350 million (including a preliminary investment of up to Rs 100 crore). However, it subsequently chose not to submit a binding offer, and is no more in the race for Fortis.

The Fortis board on May 10 selected the Munjal-Burman combine's offer. A look at all the bids.