BackKKR-backed firm Radiant Life Care makes offer for Fortis
KKR-backed Radiant Life Care has offered to acquire at least 26% stake in Fortis Healthcare at Rs126 per share, excluding its diagnostic business SRL
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New Delhi: Fortis Healthcare Ltd (FHL) said that it has received a non-binding expression of interest from KKR-backed Radiant Life Care Pvt. Ltd, making it the fifth bidder for the beleaguered firm.
Radiant Life Care has offered to acquire at least 26% stake in FHL at Rs126 per share, excluding its diagnostic business SRL.
“The company has received an unsolicited non-binding expression of interest from Radiant Life Care Pvt Ltd with a proposal for making investment and/or re-structuring the company subject to certain conditions as mentioned in the offer letter," Fortis said in a regulatory filing late last night.
To fulfil immediate cash requirement, Radiant Life Care said it is prepared to purchase Fortis’ interest in FMRI, Gurugram, and Fortis Shalimar Bagh in New Delhi. “Our offer is demerger of hospital businesses from Fortis Healthcare into “NewCo", excluding Fortis’ stake in SRL. All cash open offer to shareholders of NewCo at price of Rs165 per share, adjusted for per share value of FHL’s shareholding in SRL, that is Rs39. Net value of Rs126 per share of the NewCo," Radiant Life Care said.
“The aforesaid per share value of SRL is arrived at assuming equity value of 100% of SRL at Rs3,600 crore," it added. Radiant Life Care said its offer is subject to Radiant being able to acquire 26% of more shares of the NewCo via open offer.
“In case Radiant is unable to acquire 26% or more shares of NewCo through open offer, the NewCo shall do preferential allotment at Rs126 per share to Radiant to enable 26% stake in NewCo," it added.
Radiant Life Care said it will fund and underwrite the acquisition of healthcare assets of RHT Health Trust via rights issue. On Thursday, Fortis Healthcare board approved evaluation of only binding offers and formed an expert committee to evaluate the proposals and make a final recommendation by 26 April.
In a separate filing, FHL said the advisory committee constituted to oversee the evaluation process and function as an advisor to the board shall be lead by Deepak Kapoor, former chairman and CEO of Price Waterhouse Coopers, India, and constitute of Renuka Ramnath, former MD and CEO of ICICI Venture, and Lalit Bhasin, president, Society of Indian Law Firms, and managing partner Bhasin & Co., as its members.
The troubled healthcare chain had received binding offers from Manipal-TPG consortium, and Munjal and Burman family offices. It had also received non-binding expression of interests from Malaysia’s IHH Healthcare Berhad and Chinese firm Fosun Health Holdings.
The Manipal-TPG-led consortium had raised their offer for Fortis last week to Rs155 per share by valuing the hospital business higher at Rs6,061 crore from Rs5,003 crore in its initial offer on 27 March.
On the other hand, Hero Enterprise Investment Office and Burman Family Office made improved offer on Thursday by willing to invest Rs1,500 crore directly at a valuation of Rs161.6 per share from the earlier Rs1,250 crore.
Malaysia’s IHH Healthcare, which had last week offered to acquire stake in the Indian firm at Rs160 per share, also upped the ante by proposing to infuse Rs4,000 crore through a preferential allotment of equity shares at a price not exceeding its offer share price.
Fortis Healthcare had also received an unsolicited non-binding expression of interest from Fosun Health Holdings, an arm of Fosun International, with a proposal of primary infusion at a price up to Rs156 per share up to a total investment of $350 million (over Rs2,295 crore).
In order to evaluate the binding offers, the advisory committee, after due evaluation and post taking into account the independent view of Standard Chartered Bank, will make a final recommendation to the board by 26 April. Reuters
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