IHH Healthcare submits binding offer for Fortis Healthcare

As the deadline for submitting the binding offer for Fortis Healthcare nears, IHH Healthcare of Malaysia has put in a binding bid to join the race against Manipal Hospital-TPG and Burman-Munjal consortium.

IHH, a provider of premium integrated healthcare services, offered a total investment of Rs 4,000 crore, including Rs 650 crore upfront and Rs 3,350 crore post due diligence. It also values the company at Rs 160 per share.

Earlier this month, IHH has reached out to the Fortis board with a non-binding offer.

IHH in its offer has asked for three weeks of due diligence process before they can infuse Rs 3,350 crore. It also sought exclusivity of four weeks from the start of the due diligence exercise.

According to the Malaysian company's offer, IHH wants to do a proper financial and legal due diligence before they can go ahead with the full transaction. They also asked for access to auditors, Deloitte and Luthra & Luthra, which is conducting an investigation into the alleged fund diversion case.

As of now, three out of five bidders — IHH Healthcare, Manipal-TPG, Burman-Munjal consortium — have offered binding bids.

Other two bidders, China's Fosun International and Mumbai-based Radiant Life care offered non-binding bids.

Earlier, CNBC-TV18 had reported that Manipal-TPG has the 'right to match' the highest bidder as part of the agreement with the Fortis board.

On Monday, Fortis Healthcare said that Hero Enterprise Investment and the Burman family have extended the validity of their improved, joint binding offer to invest Rs 1,500 crore in the company till May 4.

Last week, the Fortis board had appointed an advisory committee to evaluate the offers made to buy out the company. The committee, which is headed by Deepak Kapoor, former Chairman and CEO of PriceWaterhous Coopers, India, will meet on April 25.

The board will decide the final winner for Fortis Healthcare on April 26, after taking the opinion from the committee.

CNBC-TV18 was the first to highlight the severe deficiencies in the composition of the Fortis Healthcare board and argued that the board will have to appoint an independent committee to advise on the bids.