Fortis board to meet this week to consider takeover options

Elias Hubbard
April 16, 2018

Fortis Healthcare today said its board will meet this week to "look at all eligible options" as two more parties have entered the fray to acquire it after its pact with Manipal Health Enterprises.

In an announcement to Malaysia's stock exchange, IHH said Fortis cited the binding agreements that it had entered into with Manipal Health Enterprises Private Limited, Manipal Global Health Services and TPG Asia as its reason for is inability to engage with the company. Indian rival Manipal Health Enterprises Pvt Ltd had last month offered to buy the hospital business of Fortis, which is under investigation over financial fraud.

Last week, IHH Healthcare Berhad had made an offer to buy the company at ₹ 160 per share, heating up the takeover battle for Fortis. IHH had offered the price of Rs160 per share, which is best offer among the three offers Fortis has received.

Quoting an analyst with a brokerage in Mumbai, the wire news said an IHH merger with a hospitals chain such as Manipal might make more sense, adding that more details of the IHH offer were needed.

IHH operates healthcare facilities across nine countries via a network of 49 hospitals including Mount Elizabeth and Gleneagles in Singapore.

"IHH had on April 11 issued a strictly non-binding letter to the board of Fortis Healthcare Ltd, expressing IHH's interest to participate in Fortis and its affiliates in a suitable manner". Trading in IHH shares were halted on Monday; earlier in the session, the shares declined as much as 0.7 per cent.

Other reports by Click Lancashire

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