Fortis Healthcare offers to buy out RHT for $966.23m

The offer is 11% higher than the closing price.

India-based Fortis Healthcare offered to buy out RHT Health Trust's (RHT) assets for $966.23m (INR46.5b) or 90 cents per share.

According to DBS Equity Research, the offer is 11% higher than its closing price on 15 November 2017, and implies a P/NAV of 1.07x.

There is a 60-day exclusivity period to negotiate.

Here's more from DBS Equity Research:

In addition, according to Fortis’ announcement, the proposed transaction would be funded with a combination of equity, quasi-equity and/or debt.

Fortis has an enabling resolution in place to raise capital for up to INR50b and has been in active dialogue with financial/strategic investors to raise funds.

Could there be a new strategic investor, investing in Fortis Healthcare with the similar structure like Religare Enterprise? Economic Times reported yesterday that the promoters are in talks with overseas financial investors and plans to “sell” its stake via the issuance of fresh shares.

However, according to the latest Bloomberg news, a Religare spokesman said the two announcements aren’t related, while a Fortis spokesman declined to comment.