Fortis unable to engage with our offer, says IHH Healthcare of Malaysia

Fortis stock slumps 2% after IHH flags logjam

Fortis stock slumps 2% after IHH flags logjam

"(That's because) Fortis has entered into binding agreements with Manipal Health Enterprises Pte Ltd, Manipal Global Health Services and TPG Asia", said IHH in a filing with Bursa Malaysia today. Benchmark Sensex was down 85 points, or 0.25 per cent, at 34,107 at around the same time.

Last week, IHH offered Rs 160 per share for Fortis Healthcare, valuing the company at Rs 8,300 crore, compared to Manipal Group's offer at Rs 155 per share and Hero Enterprise-Burman family's combined offer at Rs 156 per share in the first of a two-stage offer.

Malaysia's IHH Healthcare Berhad then launched a counter bid for FHL making an initial offer of ₹160 per share subject to satisfactory completion of a limited due diligence.

Fortis Healthcare had scaled 52-week high of Rs 230.90 on May 3, 2017, and 52-week low of Rs 106.65 on February 6 this year.

Separately, two Indian investors - Sunil Munjal's Hero Enterprise and the Burman Family Office - offered last week to make an investment worth 12.5 billion rupees ($191.5 million) in Fortis.

In addition, the company has received a non-binding expression of interest from IHH Healthcare Bhd, the statement said.

Representational image. Fortis hospital's official website. Ltd. and TPG at ₹ 155 per share.

"The Fortis Board will be meeting this week to look at all eligible options and determine the future course of action that is in the best interests of the company, employees and shareholders", the healthcare major said in a statement.

"At this juncture, IHH has not entered into any discussions, negotiations or transactions", it said, adding that the group will make appropriate announcement to Bursa should there be any further material development on this matter.

The Singapore-listed Malay-sian company had said last week in its proposal letter that it expected a response from Fortis before tomorrow.

IHH, in its offer letter to Fortis on April 11, pointed out that Manipal and TPG offer involved various complex steps over a prolonged period. IHH had not furbished how much stake it aims to purchase or its position on SRL and ownership structure of the Fortis's hospitals by RHT.