The race to acquire cash-strapped Fortis Healthcare has further intensified with one more suitor – Fosun Health Holdings of China – entering the fray as the fourth bidder.

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Fosun Health Holdings, a wholly-owned subsidiary of $75-billion Fosun International, approached the Fortis board with a non-binding bid late on Tuesday.

Fosun has proposed a total investment of $350 million, including a preliminary infusion of Rs 100 crore at a price up to Rs 156 a share, subject to due diligence to be completed within three weeks, the company told the Bombay Stock Exchange (BSE) in a late evening filing.

Fosun has offered to infuse Rs 100 crore within 45 days, including an option to immediately subscribe to convertible debt instruments of Fortis, on the condition that it agrees to a one-month period of exclusivity for the Chinese company to undertake due diligence and negotiate a proposal to acquire stake, according to the BSE filing.

Hong Kong-listed Fosun, a $75-billion conglomerate that has investments in sectors as diverse as technology and healthcare, said in the offer letter it has sufficient funds for the transaction and does not require any external funding.

The company has also invited the management and key doctors of Fortis to participate in the shared value creation by contributing Rs 100 crore. Fosun also said it “intends to adopt an attractive management incentive plan for which the specifics will be discussed at a later date”.

Fortis’ hospital business now has four suitors in the fray. Last week, Fortis has received two binding offers.The first was a revised offer from Manipal Hospital Enterprises and the second was a joint binding offer from Sunil Kant Munjal’s Hero Enterprise Investment Office and the Burman family of Dabur. IHH Healthcare of Malaysia also threw its hat in the ring with a non-binding expression of interest.

The board of Fortis Healthcare is due to meet on Thursday, April 19, to evaluate bids of its hospitals business.

First Published:Apr 18, 2018 12:00 AM IST