Fortis Healthcare receives EoI from Fosun Health Holdings
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Fortis Healthcare receives EoI from Fosun Health Holdings

Wednesday, 18 April 2018, 04:04 Hrs
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fortis healthcareFortis Healthcare said that it has received "an unsolicited non-binding expression of interest (EoI)" from Fosun Health Holdings.

According to a BSE filing, Fortis Healthcare's Board of Directors received the EoI from Fosun Health Holdings on Tuesday for a possible due diligence.

Fosun Health Holdings, in its letter to the company's Board, made an offer of a "primary infusion at a price up to Rs 156 per share, subject to due diligence to be completed within three weeks, up to a total investment of $350 million" including a preliminary investment of up to Rs 100 crore.

The development assumes significance as on April 14, the company reported that it has received EoI from IHH Healthcare Berhad for possible due diligence and participation with the company. 

The IHH in its letter to the company's Board on April 11, 2018 made an offer of Rs 160 per Fortis share.

Besides IHH, Hero Enterprise promoted by Sunil Munjal and the Burman family had on April 12 offered, in a joint letter, to invest Rs 1,250 crore directly in Fortis Healthcare.

Munjal said that the fund infusion "will go beyond addressing the urgent liquidity needs of the company and help the operations stabilise with immediate effect".

"Our offer is in the best interests of Fortis Healthcare.

"In fact, all those connected with the company's ecosystem, its shareholders, patients, their attendants, the community and public at large, in addition to the lenders, suppliers, doctors, medical and non-medical staff will benefit from it. We are investing in the company and our aim is to create value for all stakeholders," he had said. 

Fortis Healthcare on March 27 had announced plans to demerge its hospitals business (Fortis Hospitals) into Manipal Hospital Enterprises Private Ltd (Manipal Hospitals).

As per a statement then, the company said that the proposed transaction is subject to shareholders' approval, creditors' approval, applicable regulatory approvals (including Competition Commission of India, SEBI, stock exchanges and National Company Law Tribunal (NCLT)) and other customary conditions precedent.

The company's board has also approved the sale of its 20 per cent stake in SRL Ltd to Manipal Hospitals.

"The resultant entity Manipal Hospitals will be a publicly traded company listed on NSE and BSE. The remaining FHL will be an investment holding company with 36.6 per cent stake in SRL," the statement said.

On its part, the company in a BSE filing on April 16 said that its Board will meet sometime this week to "look at all eligible options" that it has received.

"The Fortis Board will be meeting this week to look at all eligible options and determine the future course of action that is in the best interests of the company, employees and shareholders," the healthcare major said in a statement.

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Source: IANS
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