Fortis receives non-binding offer from Radiant Life Care

Radiant Life Care has offered to acquire at least 26 per cent stake in Fortis Healthcare (FHL) at Rs 126 per share, excluding its diagnostic business SRL. "The company has received an unsolicited non-binding expression of interest from Radiant Life Care Pvt Ltd with a proposal for making investment and/or re-structuring the company subject to certain conditions as mentioned in the offer letter," Fortis said in a regulatory filing late Thursday night. To fulfil immediate cash requirement, Radiant Life Care said it is prepared to purchase FHL's interest in FMRI, Gurugram, and Fortis Shalimar Bagh in New Delhi.

"Our offer is demerger of hospital businesses from Fortis Healthcare into "NewCo", excluding Fortis' stake in SRL. All cash open offer to shareholders of NewCo at price of Rs 165 per share, adjusted for per share value of FHL's shareholding in SRL, that is Rs 39. Net value of Rs 126 per share of the NewCo," Radiant Life Care said. "The aforesaid per share value of SRL is arrived at assuming equity value of 100 per cent of SRL at Rs 3,600 crore," it added.

Radiant Life Care said its offer is subject to Radiant being able to acquire 26 per cent of more shares of the NewCo via open offer. "In case Radiant is unable to acquire 26 per cent or more shares of NewCo through open offer, the NewCo shall do preferential allotment at Rs 126 per share to Radiant to enable 26 per cent stake in NewCo," it added.

Radiant Life Care said it will fund and underwrite the acquisition of healthcare assets of RHT Health Trust via rights issue. On Thursday, Fortis Healthcare board approved evaluation of only binding offers and formed an expert committee to evaluate the proposals and make a final recommendation by April 26.

In a separate filing, FHL said the advisory committee constituted to oversee the evaluation process and function as an advisor to the board shall be lead by Deepak Kapoor, Former Chairman and CEO of Price Waterhouse Coopers, India, and constitute of Renuka Ramnath, former MD & CEO of ICICI Venture, and Lalit Bhasin, President, Society of Indian Law Firms & Managing Partner, Bhasin & Co., as its members.