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Fortis Healthcare Ltd. of Gurugram received a lukewarm response for its hospital badets with only two of the four interested bidders submitting a quote.
Following the series of bid submissions since March of this year, there were four contenders – Manipal Health Enterprises – TPG Capital (MHE-TPG), IHH Healthcare, Hero Enterprise Investment Office – Burman Family Office (Munjal-Burman) and Radiant Life Care supported by KKR – in the fray to acquire the second largest hospital network in India.
The newly formed Fortis Healthcare Board of Directors set certain conditions for participation in the binding process. The requirements included a minimum investment of Rs 1,500 crore in Fortis by preferential allocation, a plan to finance the acquisition of RHT Health Trust, an exit plan for private investors of Fort SRL, an unconditional offer, disclosure of the source Financing in the Supply and
Sources told DNA Money that only two bids – from IHH Healthcare and MHE-TPG – were received by Fortis until Tuesday. morning, which was the deadline for submission of bids. The price quoted by the two bidders was not known
After bidding, Fortis Healthcare stated in a regulatory file: "The firm bids will be evaluated by the company's Board of Directors in consultation with his advisers. "
On Tuesday, IHH Healthcare of Malaysia confirmed its participation with an announcement, stating:" Based on the adequacy of the bids evaluated earlier, including the revised IHH improved proposal, The Fortis Council invited IHH to participate in the process, subject to the above, IHH wishes to announce that on 3 July 2018, the IHH has sent a letter to the Fortis Board of Directors containing a Firm Offer Replacing and Replacing the Revised Amended Proposal. "The IHH firm offer is valid until July 16th.
The Munjal-Burman duo, whose offer was accepted by the previous Fortis Board of Directors, did not participate in the last call for tenders, according to a source.
The last round of bidding and precedents is that this time potential buyers have been allowed to access the data room for due diligence.
It is thought that the answer is lukewarm this time because of certain facts that must have been revealed. as well as Luthra & Luthra's latest report noting "systemic failures and controls"
The Reconstituted Board also announced the commencement of legal action against the Singh – Malvinder and Shivinder brothers – the former promoters of Fortis Healthcare, to recover. Rs 500 crore under outstanding inter-company deposits and other advances.
Market Regulator Securities and Exchange Board of India (Sebi) and Serious Fraud Investigation Office (SFIO) unde The Department of Corporate Affairs is investigating Fortis Healthcare.
Sebi ordered a judicial audit and the SFIO suspects a financial fraud of the order of Rs 475 crore. The SFIO is expected to submit its findings to the Department of Corporate Affairs by the month of August.
Last week, the Board approved the results of Fortis Healthcare after several rounds of delays. The quarterly loss of the hospital chain increased from Rs 19.10 crore at the end of the quarter last December to 914.32 crore in the fourth quarter. As at March 31, 2017, the company posted a net profit of 479.29 crores. However, after a year, he plunged into a loss of Rs 934.42 crore.
HURDLES GALORE
- The difference between the last round of bids and the previous ones is that this time the potential buyers were allowed to access the data room
- It is believed that the answer is lukewarm this this time because of certain facts that had to be revealed as well as the last report of Luthra and Luthra stating [traduction] "systematic failures and overstepping of controls".
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