Binding pact with Manipal Health prevented Fortis from engaging with IHH

(Apr 17): Fortis Healthcare indicated its inability to engage with IHH Healthcare Berhad due to its “binding agreement” with TPG-backed Manipal Health Enterprises.

India’s second-largest hospital chain responded in the negative after Southeast Asia’s largest hospital operator expressed its interest to bid for the beleaguered healthcare company, IHH said in an exchange filing today. Last week, Bloomberg had reported that the Kuala Lumpur-based company proposed a potential offer of around US$1.3 billion ($1.7 billion) for Fortis Healthcare, topping the TPG-backed consortium’s bid.

Fortis has turned into a much-wanted asset as Hero Enterprise Investment Office and the Burman Family Office too offered to invest Rs 1,250 crore ($2.5 million) directly into the hospital company last week. The Fortis board is evaluating this offer. Even Ranjan Pai-led Manipal Health, whose offer is valid till April 17, sweetened its deal by offering more value to shareholders. The Fortis board will be meeting this week to look at eligible options, it said in an exchange filing today.

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