IHH Healthcare ready to infuse up to RM2.3 billion into India's Fortis

PETALING JAYA: IHH Healthcare Bhd, whose bid for India’s Fortis Healthcare Ltd was rejected recently, said it is ready to invest up to 40 billion rupees (RM2.36 billion) through a preferential allotment of equity shares at a price not exceeding 160 rupees per share.
Its offer comes as Fortis announced that it had received an improved binding offer worth 15 billion rupees from Hero Enterprise Investment Office and Burman Family Office.
Fortis has two other offers on the table – one up to US$350 million (RM1.36 billion) from Fosun International Ltd and another a 155 rupee a share bid from Manipal Hospitals Enterprises.
In a filing with Bursa Malaysia, IHH said it had issued a strictly non-binding letter to the board of Fortis expressing its readiness to infuse up to 40 billion rupees, subject to satisfactory completion of due diligence.
The group said the infusion is intended to fund the buyout of the assets from RHT Health Trust as well as provide immediate liquidity towards working capital and infrastructure upgrades.
“The board of Fortis has acknowledged receipt of the letter and indicated that it is scheduled to meet on April 19, 2018 to consider all options,” IHH noted.
At this juncture, IHH said, the parties have not entered into any discussions, negotiations or transactions.
The company added that it will make appropriate announcements to Bursa Malaysia Securities in a timely manner in accordance with the listing requirements should there be any further material developments.
IHH advised its shareholders or investors to exercise caution and seek appropriate independent advice when dealing in IHH shares.
On Bursa Malaysia today, IHH was up two sen at RM6.10 on volume of 4.2 million shares.