On Friday, Fortis Healthcare Ltd accepted an offer of investment from Malaysia’s IHH Healthcare Bhd, after a month-long bidding tussle for the control of the firm that garnered attention from domestic as well as international investors.
Fortis has been extremely short on capital and after the investment, they said that IHH will invest ₹4,000 crore at ₹170 per share in the business firm that handles more than 30 private hospitals across India. Recently, there has been a significant increase in funding for private healthcare businesses.
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The bid has ended at a 19.5 per cent premium to the healthcare’s closing price on Thursday.
Fortis will now issue 235.3 million shares by preferential allotment to Northern TK Venture Pte. Ltd, an entity of IHH. The allotment will give the entity roughly 31 per cent of the company’s total voting equity share capital.
Manipal Health Enterprises Ltd., TPG Capital, and Radiant Life Care Pvt. Ltd. had also bid for attaining stakes in the healthcare firm. Fortis had become an eye-catching takeover target after recent developments in the healthcare industry.