KUALA LUMPUR (Apr 24): IHH Healthcare Bhd has submitted a revised proposal to participate in Fortis Healthcare Limited and its affiliates with a binding offer (without any due diligence) that will see an immediate injection of primary equity of INR650 crores or RM382.6 million into Fortis, at a valuation of INR160 per share or RM9.42 per share, according to a status update filed on Bursa Malaysia today.

The injection will be done by way of a preferential issue and allotment of equity shares, with IHH given the right to appoint two directors on the board of Fortis.

The binding commitment is subject to confirmation by Fortis that IHH will be given immediate access to carry out a legal and financial due diligence within three weeks from the first day IHH is granted access to the data room fully populated with all the required information.

Other than that, it is also subject to other conditions, namely the receipt of all the applicable approvals from Fortis’ shareholders and any relevant regulatory approvals, and discussion on the end-use of the immediate equity infusion with IHH’s nominees on the board of Fortis, but to be applied primarily towards payment of immediate dues to employees, creditors as well as easing the debt servicing needs of Fortis.

In the filing, it also added that a non-binding proposal to infuse up to INR3,350 crores or RM1.97 billion through a subsequent preferential issue and allotment of equity shares, subject to satisfactory completion of the due diligence and execution of mutually binding definitive documents.

The definitive documents will be discussed and agreed upon during the exclusivity period of four weeks commencing from the start of the due diligence exercise in order for the revised proposal to be swiftly implemented.

The revised proposal will be withdrawn if no response is given by Fortis by no later than 5pm on May 4 this year.

Recall that IHH had submitted a non-binding proposal to Fortis, expressing the group’s readiness to infuse up to INR4,000 crores with a preferential allotment of equity shares at a price not exceeding INR160 per share, subject to satisfactory completion of due diligence.

The revised proposal will see an immediate infusion of the much-needed cash for Fortis.

Other bidders for control of its private hospital business include rival hospital operator Manipal Healthcare Enterprises Pvt Ltd and its backer TPG Capital, a joint offer from Sunil Munjal’s Hero Enterprise Investment Office and the family office of the Burmans of Dabur and China’s Fosun.

As of closing, IHH’s share price was down by 0.16% or 1 sen to RM6.09 with about 4.2 million shares traded, giving it a market capitalization of RM50.2 billion.