This article first appeared in The Edge Financial Daily on May 2, 2018

BENGALURU/MUMBAI: Cash-strapped Indian hospital operator Fortis Healthcare Ltd said yesterday that two of its five suitors had boosted their bids to invest in the company as of a deadline for binding offers yesterday.

Malaysia’s IHH Healthcare Bhd lifted its offer to 175 rupees (RM10.31) a share, a 9.4% premium to an earlier proposal. IHH had earlier proposed injecting 6.5 billion rupees immediately into Fortis, and then 33.5 billion rupees after due diligence.

Indian businessmen Sunil Munjal and Anand Burman increased their combined offer to invest in the company to 18 billion rupees from 15 billion rupees, via a subscription to shares and warrants. They have offered 167 rupees per share and 176 rupees per warrant.

Five companies and investment groups are vying to control or partner with Fortis, which has 30-odd hospitals in India, as they bet on a rapid growth for the private healthcare market in Asia’s third-largest economy.

Yesterday noon (0630 GMT) was the deadline for binding offers, which will be evaluated by an expert advisory panel. Fortis’ board is due to meet on May 10 to consider the panel’s recommendations.

Manipal, another operator of Indian hospitals along with buyout firm TPG, last week raised its binding offer to buy Fortis’ hospital business at a valuation of 63.22 billion rupees — 4.3% higher than its previous bid. The group, Fortis’ first suitor, has until Sunday to further revise its offer.

Radiant Life Care Pvt Ltd, backed by private equity firm KKR & Co, has also made a binding offer to acquire Fortis’ Mulund Hospital in Indian financial hub Mumbai for an enterprise value of 12 billion rupees. It has also made a separate non-binding offer involving a separation of diagnostic services company SRL from the Fortis stake sale process.

China’s Fosun International is the other suitor. It made a non-binding offer last month to invest up to US$350 million (RM1.37 billion) subject to due diligence, for a stake that would be less than 25%.

On Monday, Fortis shares closed down about 1% at 152.40 rupees. Indian markets were closed for a holiday yesterday. — Reuters