Malaysian investment holding company IHH Healthcare Bhd is proposing a rival offer for Fortis Healthcare Ltd, valuing the Indian company at as much as $1.3 billion, Bloomberg reported bloom.bg/2HtCIxX, citing people with knowledge of the matter.
The new offer values Fortis' hospital business at ₹6,061 crore or ₹116 a share.
Of the Rs 1,250 crore - Munjal and Burmans have offered to invest Rs 500 crore immediately, and Rs 750 crore post due diligence to be completed within three weeks.
The regulatory investigations, tightened credit, a lack of liquidity and a smaller board has "adversely impacted decision-making" at Fortis, IHH said in the letter, and asked Fortis to respond to its offer before April 18.
IHH letter, which was made public by Fortis on Friday, said that its request for due diligence primarily stemmed from the inability of the statutory auditors of the company to opine on its financial position as at December 31, 2017, and regulatory investigations that were now under way.
Fortis has also received an investment offer worth 12.5 billion rupees ($191.5 million) from India's Hero Enterprise Investment Office and the Burman Family Office - private investment arm of the family that owns consumer goods firm Dabur India, the company had said on Thursday.
"The said proposal is under evaluation by the company and we will keep the stock exchanges informed accordingly", it added.
The Fortis sale has been delayed due to the legal cases against its founders, brothers Malvinder and Shivinder Singh, who lost control of the healthcare firm after their stakes plunged to low single digits. Ranjan Pai, chairman, Manipal Education and Medical Group, in an interview to VCCircle had said that given the complexity of the deal structure, the relative valuation has not been properly understood.
Manipal, the first one to throw the hat, has revised its offer from Rs140 per share to Rs155 per share.
The Hero and Burman group entities are shareholders of Fortis, with about a 3 per cent stake in the hospital operator, according to the offer letter from the investors attached to the filing.