Business

Malaysia’s IHH Healthcare Wins Bid To Invest Rs 4,000 Crores In Fortis Healthcare Ltd

JAVED SAIFI | 0
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| July 13 , 2018 , 12:40 IST

The board of directors of Fortis Healthcare Ltd has accepted the investments of Rs 4,000 crores from Malaysia’s IHH Healthcare Berhad, media reported on Friday. The investments were approved through preferential allotment at the rate of Rs 170/per share.

Malaysia’s IHH healthcare surpassed Manipal Hospitals-TPG combine to become the highest bidder to acquire shares in FHL group. The proposal of IHH was approved after more than a year as the world’s second largest healthcare services was pulling out of the bilateral negotiations with promoters Malvinder and Shivinder Singh, other bidders for Fortis was the consortium of Manipal Hospitals and TPG.

Also Read: Fortis Healthcare To Merge Hospital Business Into Manipal Hospitals

As per reports, the company's filing to the stock exchanges said, “The proposed investment of Rs 4,000 crore offers a comprehensive equity solution addressing Fortis’ liquidity requirements, obligations towards RHT acquisition and providing an exit to private equity investors of SRL.”

“The accepted proposal offers a cash exit option to 26 percent shareholders (on expanded share capital basis) through the mandatory tender offer of up to Rs 3,300 crore at a price of not less than Rs 170 per share. The transaction is subject to the shareholder’s approval and CCI approval,” the filing said.

The transaction is to be settled within 7 days of receipt of the shareholders and CCI approval.

IHH is likely to offer upto Rs 3,300 crore in order to acquire the additional 26 percent share of the company at a price of Rs 170/per share. IHH operates in 9 countries and has 49 hospitals to offer top-notch medical healthcare facilities.