Fortis Healthcare Ltd.'s minority shareholders said an acquisition offer from a consortium comprising Manipal Health Enterprises Private Ltd and TPG Capital Advisors LLC undervalued India's second-largest hospital chain, The Economic Times reported.
The company's shares fell by more than 13% on March 28 after shareholders criticized the deal, according to the newspaper.
Under the deal, the consortium will acquire Fortis Healthcare's hospital division by issuing 10.83 shares in Manipal Hospitals for every 100 shares of Fortis.
Fortis said its hospital division accounts for about 81.3% of the group's total turnover.
The company's minority shareholders said the deal valued the group at about 95 Indian rupees per share, lower than consensus analysts' estimate of 125 rupees to 150 rupees per share, the newspaper reported.
Fortis Healthcare's single largest shareholder, YES BANK Ltd., is also against the deal, the news outlet reported, citing a source.
The newspaper noted that despite having less than half of Fortis Healthcare's revenue in first nine months of fiscal 2018, Manipal was valued at 50 billion rupees, compared to Fortis' valuation of 64 billion rupees.