Seven years after the Malaysian company purchased 31.1% of the Indian hospital chain, IHH said this week that SEBI had authorized its blocked open offer for a 26.1% interest in Fortis Healthcare.
According to a regulatory filing, Malaysia’s IHH Healthcare has maintained the open offer price, which is anticipating completion in the fourth quarter of 2025, at Rs 170 per share for a 26% investment in Fortis Healthcare, with an interest rate of Rs 53.8 per share for qualified shareholders.
Seven years after the Malaysian company purchased 31.1% of the Indian hospital chain, IHH said this week that SEBI had authorized its blocked open offer for a 26.1% interest in Fortis Healthcare. IHH Healthcare’s regulatory filing, which Fortis Healthcare disclosed, said that the offer price in the Fortis open offer is Rs 170 per share, plus applicable interest that is only due to qualifying shareholders at a rate of Rs 53.80.
The Supreme Court of India’s order dated September 22, 2022, will allow the eligible public shareholders of Fortis to receive interest at the rate of 10% annually until the actual date of consideration payment to the tendering shareholders, it said, subject to SEBI’s approval. According to the filing, this claim is applicable to Fortis shareholders who were stockholders on December 4, 2018, and who are still shareholders as of that date.
The offer price in the Fortis Malar Open Offer is Rs 17.6 per share, and qualified owners will also be entitled to receive an additional Rs 18.36 in interest. “The Fortis Open Offer and the Malar Open Offer are anticipated to be concluded in the fourth quarter of 2025, barring unexpected circumstances,” the document said.
IHH defeated competitor Manipal-TPG in the contest to purchase a 31.1% share in Fortis in 2018 with a Rs 4,000-crore agreement. Then, on December 18, 2018, IHH planned to launch its open offer for a further 26% of Fortis, which would have cost Rs 3,300 crore and concluded on January 1, 2019.
However, in response to a challenge by Daiichi Sankyo about its purchase of pharmaceutical company Ranbaxy Laboratories, the Supreme Court in December 2018 ordered status quo regarding the sale of controlling shares in Fortis Healthcare to IHH Healthcare by erstwhile founders Malvinder and Shivinder Singh. The ruling from the highest court halted IHH’s open bid for a further 26.1% of Fortis.