Malaysia’s healthcare giant IIH healthcare bhd is all set to get control of 51% stakes in India’s Fortis Healthcare Ltd. This is going to be a big move for this South Asian player and will help in expanding its brand presence in India, further strengthening its position.
Manipal Health Enterprises was the only other contender, which has been outbid by IIH by placing a higher per share offer and also offering to buy out Fortis’s non-promoter shareholders at a 10-15% premium.
The plan given by IIH offers both short-term liquidity of funds and long-term strategic requirements and their offer is higher than Manipal.
Manipal, on the other hand, has offered to infuse 2100 crore cash and also some borrowed money to clear of RHT health trust wherein Fortis holds some 29% stakes.
By keeping Fortis’s stake in RHT and a debt of around ₹ 1,000 crores on its books, RHT’s actual valuation comes to between ₹ 2,200 crores and ₹ 2,500 crore, which can be cleared with Manipal’s cash and borrowed money.
The newly constituted board at Fortis is evaluating each angle and only after scrutinizing every point, they will reach a conclusion.