RHT HealthTrust   

Religare H Trust

IHH Proposes Up to $1.3 Billion Fortis Bid. RHT Health Trust reaches agreement to sell entire portfolio to Fortis Healthcare for S$950 million.

I wonder the IHH bid for Fortis includes RHT portfolio or assets that pending for sale to Fortis?
 

 

Haha, this counter is still around.
I had deleted it fm my watchlist and buylist months ago when it announced the sale (and expected delisting).
Lol.

 

Mumbai:  Some shareholders of Fortis Healthcare Ltd have come together to oppose the sale of Fortis hospitals to the Manipal Health Enterprises-TPG Capital combine, two people directly aware of the development said on condition of anonymity. 

The investors, led by India-focused hedge fund Eastbridge Capital, have approached several other shareholders of Fortis, including activist hedge fund Elliott Management Corp. and a mutual fund with a large shareholding, to oppose the deal. 

The stance of Yes Bank Ltd, which owns close to 15% stake in Fortis, was not immediately known. Emails sent to Fortis, Eastbridge Capital, Elliott Management and Yes Bank remained unanswered until press time.

 

&ldquo This section of investors, which so far collectively account for close to 30% of Fortis shareholding, plan to write to Fortis&rsquo s board seeking an extraordinary general body meeting to replace the current board and induct new members and also call for a transparent auction process of Fortis to the highest available bidder,&rdquo said one of the two people cited above, requesting anonymity.

&ldquo The shareholders are opposed to the way the deal with TPG was structured and want a better valuation,&rdquo said the second person, also requesting anonymity. &ldquo The shareholders also want the board to find an alternative to raising funds to buy back the stake in Fortis from Singapore-based Religare Health Trust for Rs4,650 crore which is expected to help the company save up to Rs270 crore on service fees and Rs75 crore on interest costs.&rdquo

On Wednesday, the last trading day, Fortis Healthcare share price plunged 13.37%, or Rs19.05, to Rs123.40 on news of the Fortis-Manipal deal.

 

In an interview on 28 March, Puneet Bhatia, co-managing partner and country head, TPG Capital, said that he expects the Fortis-Manipal deal to cross multiple hurdles. Bhatia did not elaborate on the nature of challenges the deal is likely to face.

Emails sent to TPG Capital and Manipal group remained unanswered till press time.

On 28 March, the board of Fortis announced the sale of its hospital assets to the Manipal-TPG combine. Apart from hospital assets, Fortis&rsquo s board also approved the sale of 20% stake in SRL Diagnostics. As part of the proposed transaction, Manipal promoter Ranjan Pai and TPG Capital will invest Rs3,900 crore in Manipal Health Enterprises Pvt. Ltd. The funds will be utilised by Manipal Health to finance the acquisition of hospital assets of Fortis Healthcare and 50.9% stake in SRL&mdash 20% from Fortis Healthcare and 30.9% from investors Avigo Capital, Jacob Ballas and International Finance Corp.

 

The investment will support the proposed acquisition of hospital assets owned by RHT Health Trust and the growth of the hospitals and the diagnostics businesses, Fortis said in its statement. The proposal will be put to vote before shareholders in a special meeting scheduled to be held within 30 days of the deal announcement. 

The proposed sale of majority control in Fortis has faced several legal headwinds ever since its erstwhile promoters brothers Malvinder and Shivinder Singh decided to exit the hospital chain and began discussions with potential buyers. On 31 August, the apex court refused to permit the Singh brothers, former Ranbaxy Laboratories Ltd promoters, from selling their stake in Fortis Healthcare. It also refused permission to banks with whom the Singh brothers had pledged Fortis shares to do the same. They were further restrained from disposing of any of their assets (encumbered and unencumbered) till the final disposal of the case.

Mint  had reported on 15 March that the control of Fortis, which has been without defined promoters, is likely to escalate into a bidding war between its suitors including hospital chain IHH Healthcare Bhd.  Mint  had reported that TPG Capital-Manipal Health combine and IHH Healthcare could acquire shares from the public and banks to wrest control of Fortis. Currently, 80% of Fortis&rsquo s shares are with the institutions and public while 20% of pledged promoters shares are held by lenders Yes Bank Ltd and Axis Bank Ltd.

 

 

coming.... Bloomberg: "   TPG Nears Deal for India' s No. 2 Listed Hospital Chain"

but may take 2 years for Fortis - RHT deal... "   TPG and Manipal&rsquo s cash outlay to gain control of Fortis and SRL may total as much as 60 billion rupees, one person said. Fortis could use the money invested by TPG and Manipal to fund its previously announced purchase of the assets of Singapore-listed  RHT Health Trust, which owns some of Fortis&rsquo s clinics, as well as for debt repayment, according to the person. 

It could take nearly two years to complete all parts of the multistep transaction being contemplated, the person said."

at least there' s more certainty than last few weeks... :)
 

 

keep the faith. Fortis HC CEO recently reaffirmed the acquisition will be helpful for his company.
few more months to go......

 

why keep fallingggggggg

 

this round cash return 1.22cent = 1.5%,
if based on 3.45cent = 4.2%
if transact value at 0.86 = 6.1%
 

 

Agreed. Added more.

bobiewong      ( Date: 14-Feb-2018 09:46) Posted: With the Cash Dividend and the certainty of the value at S$0.88, will be a good parking of fund for the next 2 or 3 months for the assured return?

 

0.86 as stated in their documents, however they still have issues trying to collect outstanding payments.

 

With the Cash Dividend and the certainty of the value at S$0.88, will be a good parking of fund for the next 2 or 3 months for the assured return?

 

most probably (d)

 

It is likely to be (C).

e4ezzz      ( Date: 13-Feb-2018 21:40) Posted: Dear Ehclim, All in all, how much is the uniholder suppose to get: a) 0.86 b) 0.88 c) 0.86+ 0.0345 d) 0.88 + 0.0345 Thank you in advance

 

Dear Ehclim,

All in all, how much is the uniholder suppose to get:
a) 0.86
b) 0.88
c) 0.86+ 0.0345
d) 0.88 + 0.0345

Thank you in advance

 

For the 9 months ended 31 December 2017 (" 9MFY2018" ), the Trustee-Manager has estimated, that based on the Distributable Income, the amount available for distribution is 3.45 cents per unit.

ehclim      ( Date: 13-Feb-2018 20:42) Posted: The net proceeds post settlement of  transaction costs and expenses of approximately S$15.8 million  (including  S$10.3  million  payable  to  the  Trustee-Manager  as  a  Performance  Fee) is S$0.86  per Unit. MonkeyKingGod      ( Date: 13-Feb-2018 16:44) Posted: should be 0.88 if not interpret wrongly, but anyone know if they have outstanding dividend to pay off and its proposed to buy share or to give  a big fat special dividend

 

The net proceeds post settlement of  transaction costs and expenses of approximately S$15.8 million  (including  S$10.3  million  payable  to  the  Trustee-Manager  as  a  Performance  Fee) is S$0.86  per Unit.

MonkeyKingGod      ( Date: 13-Feb-2018 16:44) Posted: should be 0.88 if not interpret wrongly, but anyone know if they have outstanding dividend to pay off and its proposed to buy share or to give  a big fat special dividend. Just4win      ( Date: 13-Feb-2018 16:42) Posted: That' s good ! Finall

 

Those who bought it yesterday will be laughing all the way to the bank.

bobiewong      ( Date: 13-Feb-2018 19:09) Posted: All asset owners should know that asset value increases over time, medical service costs moves up over time.... which means the business turnover for hospital services will increase over time.... Assets make the biggest return when the holding is for long period.   Not sell when it is at the early stage.   The buyer Fortis will reap all the advantage with these assets..... which was started out by RHT....

 

All asset owners should know that asset value increases over time, medical service costs moves up over time.... which means the business turnover for hospital services will increase over time.... Assets make the biggest return when the holding is for long period.   Not sell when it is at the early stage.   The buyer Fortis will reap all the advantage with these assets..... which was started out by RHT....

 

why should the landlord let the tenant buy over at 0.88 per share.   the landlord should ask for 0.98.   because once sold, mean no more rental collection.

 

RHT - Good News - Worth waiting for 

 

should be 0.88 if not interpret wrongly,

but anyone know if they have outstanding dividend to pay off and its proposed to buy share or to give  a big fat special dividend.

Just4win      ( Date: 13-Feb-2018 16:42) Posted: That' s good ! Finally MonkeyKingGod      ( Date: 13-Feb-2018 16:25) Posted: acquistion goes through!