FHL receives new offer from Manipal-TPG, share price hiked to Rs 180
Mumbai, May 14: Fortis Healthcare (FHL) on Monday said that it has received a "modified" new offer from the consortium of Manipal Health Enterprises (MHEPL) and private equity (PE) firm TPG.
As per a BSE filing, FHL said that its Board has received a "modified" new offer from Manipal and TPG with a proposal which values the company at Rs 9,403 crore at a share price of Rs 180 per share.
"We have been following the developments of the past few days after the announcement by FHL and have observed, through media reports, the negative reaction of the FHL shareholders to the decisions of the FHL Board to accept the Hero and Burman offer," Manipal Health Enterprises said in its offer letter.
"The modified new offer is not only financially beneficial for FHL and its stakeholders in the short term but also solves the larger issues facing FHL, including FHL's payment obligation for the acquisition of the relevant Indian entities from RHT and the exit required to be provided by FHL to the private equity investors in SRL."
On May 6, the consortium of MHEPL and TPG revised their offer to acquire a stake in FHL, proposing to infuse Rs 2,100 crore into the company at a share price of Rs 160 per share. That time the consortium had proposed to merge MHEPL into FHL with the latter valued at Rs 8,358 crore.
The development comes days after the FHL Board on May 10 decided to recommend the offer of the Hero and Burman family consortium for sale of its business to the shareholders for their approval later this month.
Fortis Director Brian Tempest on May 11 had said: "The Board, by a majority, decided to recommend the Hero-Burman family offer to shareholders looking at the binding bids for the point of certainty of liquidity flowing into the company."
The company said that the entire exercise for selecting the Hero and Burman consortium involved a process that witnessed "deliberation and recommendation" by an independent Expert Advisory Committee (EAC).
The EAC comprised Deepak Kapoor, former Chairman of PWC (India), and Lalit Bhasin, Chairman of the Indian Society of Law Firms, along with two financial advisors -- Standard Chartered Bank and Arpwood Capital -- while Cyril Amarchand Mangaldas were the legal advisors.
The deal envisages an upfront equity infusion of Rs 800 crore at a price of Rs 167 per share through preferential allotment. The Munjal-Burman consortium has also offered a further amount of Rs 1,000 crore through preferential issue of warrants.
"There will be a shareholders' EGM on this on May 22 and I am positive that there will be support from the shareholders for the decision," he said on May 11.
Fortis' board had received offers from suitors such as Hero Enterprise Investment Office, Burman Family Office, Fosun Health Holdings, Malaysia's IHH Healthcare Berhad, Manipal Hospital Enterprises and Radiant Life Care for infusion of funds. The bid winners' offer was not the highest.
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Excise scam: ED seeks judicial custody for Kejriwal after he surrenders on June 2
New Delhi, May 20: The ED on Monday sought extension of Delhi Chief Minister Arvind Kejriwal's judicial custody after he surrenders on June 2 in an excise policy-linked money-laundering case.
The Enforcement Directorate (ED) moved the application before Special Judge for ED and CBI Kaveri Baweja, seeking 14-day judicial custody for Kejriwal when he surrenders on June 2, claiming that the period of judicial custody granted earlier ends on Monday.
Kejriwal is out on interim bail till June 1 following an order of the Supreme Court, which has directed him to surrender on June 2.
The ED, meanwhile, told the court that there is sufficient evidence against Kejriwal and co-accused, Bharat Rashtra Samithi (BRS) leader K Kavitha, to put them on trial in the case.
The central probe agency made the submission in support of its supplementary charge sheets filed against both the politicians.
The judge will continue hearing the ED's arguments on the point of taking cognisance of the charge sheets on Tuesday.
The judge, meanwhile, also extended till June 2 Kavitha's judicial custody in the money-laundering and corruption cases, lodged by the ED and the Central Bureau of Investigation (CBI) respectively, in connection with the scam.
The excise case pertains to alleged corruption and money laundering in the formulation and execution of the Delhi government's now-scrapped excise policy for 2021-22.
Lt Governor VK Saxena recommended a CBI probe into the alleged irregularities. Subsequently, the ED filed a case on August 22, 2022, taking cognisance of the CBI FIR that was lodged on August 17, 2022.
