IHH Healthcare's offer rejected by Fortis

PETALING JAYA: IHH Healthcare Bhd’s bid to acquire India’s Fortis Healthcare Ltd failed to take off after Fortis declined to engage with the group due to binding agreements with other parties.

IHH had on April 11 issued a non-binding letter expressing its interest to participate in Fortis and its affiliates.

“In response to the letter, the board of Fortis has indicated its inability to engage with IHH as Fortis has entered into binding agreements with Manipal Health Enterprises Private Limited, Manipal Global Health Services and TPG Asia,” IHH said in a filing with the stock exchange.

IHH added that it has not entered into discussion, negotiations or transactions with Fortis.

Earlier, IHH asked Fortis to respond to its offer of up to 160 rupee (RM9.50) per share by April 18. It was reported that IHH’s offer is higher than other contenders, including Manipal (155 rupees) and two Indian investors – Sunil Munjal and the Burman Family Office (156 rupees).

In the non-binding letter to Fortis, IHH also pointed out that its offer could provide a better option to Fortis shareholders at an attractive valuation.

IHH is the world’s second largest healthcare services provider with a market capitalisation of about US$13 billion (RM50.4 billion) with a presence in nine countries. The Group also has a growing presence in China and an expanding network across Asia and Central and Eastern Europe, the Middle East and North Africa. It is listed on the Main Markets of Bursa Malaysia and the Singapore Stock Exchange.

Meanwhile Fortis has 34 hospitals across India and some other countries, including Sri Lanka.

Separately, IHH advised its shareholders or investors to exercise caution and seek appropriate independent advice when dealing in IHH shares.

IHH’s share price fell two sen or 0.3% to close at RM6.10 today on some 7.2 million shares done.