Fortis takeover battle intensifies with unsolicited bid from KKR-backed Radiant Life Care

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The takeover battle for India’s Fortis Healthcare Ltd intensified after KKR-backed Radiant Life Care Private Ltd entered the fray on Thursday with an offer to buy more than a quarter of the cash-strapped company’s hospital business.

In its non-binding offer, Radiant has proposed to make an investment and/or re-structure Fortis Healthcare, Fortis said in a statement.

Radiant is interested in participating as a strategic investor in Fortis, it said in a letter to the hospital operator.

Radiant, the fifth suitor, proposed a demerger of the hospital from Fortis Healthcare (FHL) into a new company, excluding FHL’s stake in Indian diagnostics chain SRL Ltd.

The all-cash offer to shareholders of the proposed new company will be at a net value of 126 rupees per share, Radiant said.

The offer values Fortis at 165 rupees per share, or 85.58 billion rupees ($1.30 billion), including the SRL stake.

The offer is contingent on, among others, Radiant being able to buy 26 percent or more shares of the proposed new company, it added.

Fortis Healthcare said earlier it would set up an advisory committee to evaluate binding offers from suitors lining up to buy the company or take a stake.

KKR & Co owns a 49 percent stake in Radiant with its $200 million investment in 2017, Radiant said.