Fortis on sale: IHH, Radiant life care file fresh bids
Mumbai : IHH and Radiant Life Care have presented a revised offer ahead of Fortis hospital chain operator’s board members.
IHH in its revised proposal offered to infuse Rs 6.5 billion, valuing Fortis at Rs 160 per share. According to its assessment, Fortis would need an equity infusion of around Rs 40 billion for working capital and buying the asset portfolio of RHT Health Trust.
IHH plans to invest another Rs 33.5 billion in Fortis through preferential allotment of shares and submitted a non-binding offer for the second larger tranche.
On the other hand, Radiant Life Care offered to acquire Fortis hospital in Mumbai's Mulund area for enterprise valuation of Rs 12 billion, a move that could bring immediate liquidity.
It has proposed spin off of the diagnostic business and has made a non-binding offer to acquire only the hospital business of Fortis at a valuation of Rs 126 per share.
An advisory panel headed by Deepak Kapoor, former chief executive officer of PwC India, will meet on Wednesday and examine the offers before they are taken up for approval the next day.