Manipal CEO: Had to Take 'More Risky' Approach in Bid for Fortis
On Sunday Manipal made a risky move by sweetening its bid for Fortis, offering to inject 21 billion rupees to help the ailing hospital operator meet its immediate cash needs.
A Fortis hospital building is pictured in New Delhi. (Photo: Reuters)
Mumbai: India's privately-held Manipal Hospitals had to take a "more risky" approach to buy domestic rival Fortis Healthcare Ltd, so that it did not lose out to other suitors, Manipal's Chief Executive Ranjan Pai told Reuters.
Manipal on Sunday sweetened its bid for Fortis, offering to inject 21 billion rupees ($312.8 million) to help the ailing hospital operator meet its immediate cash needs, a move that Pai said was risky because Fortis is embroiled in a regulatory probe that is clouding its prospects.
Manipal and its consortium partner TPG Capital are offering 160 rupees per share to buy Fortis, valuing the company at 83.58 billion rupees ($1.24 billion).
Fortis shares closed down 1.3 percent at 155.95 rupees on Monday. They have risen nearly 9 percent since news broke in late March that it was close to a deal with Manipal.
"Yes, this is a more risky structure ... because we don't know what's going to come out of the SFIO," Pai said on Monday.
He was referring to India's Serious Fraud Investigation Office that is investigating allegations that Fortis' founders Malvinder Singh and Shivinder Singh took funds from the company. The founders, who have since left the company, deny wrongdoing.
In March, Fortis said it was looking into the allegations and that it expected the SFIO probe to end in less than 9-12 months.
Fortis has been a target of five firms and investment groups, who are vying for control of its 30-odd hospitals across India, including Malaysia's IHH Healthcare that wants to invest 40 billion rupees and take control of the company.
Pai said he did not expect to face antitrust hurdles because the combined company's market share will be in "single digits" and expects the merger to take six-nine months to complete.
Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.
Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.
|Power Grid Corp||211.15||2.92|
Recommended For You
- Captain America's Peggy Carter Says Her Story with Steve Rogers Had Fitting End in Avengers Endgame
- Did 'Sacred Games' 2 Have an Obvious, Glaring Error in its Season Finale Episode?
- 'Superman': Tiger Shroff Deadlifts 200KG With an Ease, Impresses Ishaan Khatter and Fans
- PV Sindhu Chases Elusive Gold at BWF World Championships
- Instagram Users Can Report False Content And Expect Fact Checkers to Verify it