Manipal -TPG, one of the front-runners for a stake in Fortis Healthcare Ltd (FHL), has revised its bid for the company further on Tuesday, two days before the Fortis board of directors is expected to take a call on the bids based on the evaluation by an expert committee.

In its revised bid, Manipal Health Enterprises Private Ltd (MHEPL) has proposed to offer a premium of ₹1,319 crore to the FHL shareholders over and above FHL Hospital Business’s equity valuation of ₹5,003 crore. Earlier MHEPL had offered a premium of Rs 1,058 crore.

"This would result in an equity value of ₹6,332 crore being attributed to the FHL Hospital Business ( as opposed to ₹6,061 crore earlier ) for the purposes of computing the share entitlement ratio for the the purposes of the demerger, and therefore, this would result in a more favourable share exchange ratio for the FHL shareholders,” MHEPL said in its revised offer submitted to the FHL board of directors.

The revised bid also proposes that Manipal Education and medical Group will arrange financial assistance of up to ₹750 crore in accordance with applicable laws, either by way of debt financing or by way of guarantees/comfort letters to lenders of FHL subject to certain conditions.

The implementation agreement, however, shall provide that the cash received by FHL from the sale of the 'Fortis’ brand shall be utilised to reduce the actual indebtedness, the proposal said.

In order to increase deal certainty, MHEPL has proposed mark ups to certain clauses of the implementation agreement, which have been sent to the FHL Board for their review.

The advisory committee constituted by the Fortis Board last week to oversee the evaluation process and function as an advisor to the board is headed by Deepak Kapoor, former Chairman and CEO of PriceWaterhouseCoopers, India. The board has asked it to evaluate all the binding bids, which led Malaysian company IHH Healthcare Bhd to change its non-binding offer to a binding one on Tuesday.

Also in the race for Fortis are the Burman-Munjal Families duo and KKR-backed Radiant Life Care which have made revised binding offers for the company. 

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Revised offers

Radiant Life Care Pvt Ltd, backed by private equity firm KKR, also made a binding offer to acquire Fortis' Mulund Hospital located in Mumbai for an enterprise value of Rs 1,200 crore, Fortis said on Tuesday.

Radiant had already made a non-binding offer last week to buy more than a quarter of Fortis' hospital business. Its new offer will provide immediate liquidity of ₹6,800 crore for cash-strapped Fortis with no equity dilution for shareholders, Radiant said in the letter on Tuesday.

Earlier on Tuesday, Malaysia's IHH Healthcare Bhd revised its bid for Fortis, making a binding proposal for about a fifth of its total offer value.

China's Fosun International had offered $350 million to buy less than a quarter of Fortis.

(With additional inputs from Agencies)

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