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Suraksha-Dosti Realty highest bidder for Jaypee Infratech; IHH to bid for Fortis

12 April, 2018

Lakshadweep Pvt. Ltd, a joint venture of Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, has emerged as the highest bidder for debt-laden Jaypee Infratech Ltd, The Economic Times reported, citing two people aware of the development.

Citing a person, the report said Lakshadweep has made a bid of Rs 7,350 crore for Jaypee Infratech Ltd. The other contenders are Adani Group and a consortium that includes Kotak Realty Fund.

The proposed deal would lead to de-listing of Jaypee Infratech and lenders will get a combined equity stake of 3.5% in the company, the report said.

The promoters of Suraksha Asset Reconstruction Company and Dosti Realty are related to Sun Pharmaceutical Industries’ founder and head, Dilip Shanghvi, according to the report.

Jaypee Infratech is undergoing bankruptcy resolution. As on 31 March 2017, its total debts were Rs 9,515 crore, according to the company’s annual report.

The company operates Yamuna Expressway, the 165-km six-lane toll-road connecting National Capital Region to Agra. The revenue from toll collection was Rs 292.72 crore for the year to March 2017.

Jaypee Infratech is also developing five townships across 25 million square metres off the Yamuna Expressway, its latest annual report shows.

In another development, IHH Healthcare Berhad, majority-owned by Malaysian sovereign wealth fund Khazanah Nasional Berhad, is planning to make a formal offer to acquire hospital operator Fortis Healthcare Ltd, Bloomberg reported, citing people aware of the development.

IHH Healthcare aims to send a letter to the board of Fortis Healthcare within the next couple of weeks about its plans to bid for the company, the report added.

IHH Healthcare is planning an all-cash deal and will consider taking the offer directly to Fortis’ shareholders if it gets rejected by the board, according to the report.

The development comes at a time when Manipal Hospital Enterprises Pvt. Ltd, backed by private equity firm TPG Capital, has raised its takeover offer for the hospital business of Fortis Healthcare Ltd.
The revised offer values Fortis’s hospital business at Rs 6,061 crore (Rs 116 per share), up almost 21% from the previous offer, Ranjan Pai-led Manipal said on Tuesday.

The revised offer values the overall Fortis group at Rs 155 per share.

Separately, the Tata group, Lufthansa and Singapore Airlines are interested in participating in the proposed divestment of debt-laden national carrier Air India, The Economic Times reported.

Citing people close to the development, the report said the Tata group is still interested in acquiring Air India, along with a foreign partner.

The likely suitors for Air India have sought a relaxation in the norms for consortiums participating in the bid. They seek the relaxation to allow change in the members of the consortium between the initial and final bidding stages, according to the report.

The other issues raised pertain to the government’s rights on the residual 24% stake in Air India (after proposed divestment) and to provisions available on the integration of the likely suitors’ existing airline business with Air India, the report said.

The last date for submitting expression of interest for Air India is May 14.

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Suraksha-Dosti Realty highest bidder for Jaypee Infratech; IHH to bid for Fortis

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