Looking to speak to Fortis shareholders on board decision: IHH

New Delhi, May 11 :

After losing out to Munjal-Burman combine in the race for Fortis, Malyasia's IHH Healthcare today said it is looking to speak to the shareholders of the Indian firm even as it evaluates options for its future course of action.

Another suitor which also lost out, Manipal-TPG consortium, also expressed disappointment over the decision of the Fortis board to go ahead with the Rs 1,800 crore offer by Munjals and Burmans stating it would be for the shareholders to decide to accept the recommendation or not.

"We are currently evaluating all possible options, to ensure shareholders have the opportunity to realise this value. We are evaluating all possible options, and are looking to speak to shareholders to hear their thoughts," IHH Healthcare Managing Director and CEO Tan See Leng told .

Asserting that IHH's offer was "holistic and compelling", he said it "comprehensively addresses the short-term financing needs and long-term objectives".

He further said the company's proposal would have benefitted all Fortis stakeholders upon triggering a mandatory takeover offer outlined in its proposal.

Fortis shareholders would also have the chance to receive the highest cash price for their shares, if they choose to exit, Leng added.

"We hope that all Fortis shareholders can review the recommendation made by the board carefully, before making a decision," he said.

Similarly, Manipal Education and Medical Group MD and CEO Ranjan Pai also expressed disappointment over the Fortis board's decision.

"Manipal remains of the view that our offer proposed the most appropriate short and long-term plan for Fortis and was in the interests of all stakeholders, including shareholders," Pai said in a statement.

The consortium's offer comprised a significant and necessary immediate investment, a clear strategic plan to fundamentally transform Fortis, as well as synergies from a combination with Manipal, he added.

"It is now for shareholders to decide whether they will accept the board's recommendation," Pai said.

Fortis Healthcare had announced that its board had picked the offer from Munjals-Burmans combine over four other suitors who made binding offers.

The board decided by majority to recommend to shareholders to approve the revised offer of Hero Enterprise Investment Office-Burman Family Office (Dabur group) made on May 1 for an upfront equity infusion of Rs 800 crore at a price of Rs 167 per share through preferential allotment.

The Munjal-Burmans further agreed to invest another Rs 1,000 crore via preferential issue of warrants priced at Rs 176 per share.

Besides, Manipal-TPG combine and IHH Healthcare, KKR-backed Radiant Life Care had also put in binding bids for Fortis.

The fifth bidder, Fosun Health Holdings, an arm of Fosun International, which made a non-binding proposal to invest a total of USD 350 million (over Rs 2,295 crore) at a price up to Rs 156 per share, did not revise its offer. MSS RKL MR MR