ADVERTISEMENT

Fortis to initiate fresh bidding process

Fortis to initiate fresh bidding process

Published
Hot News Text
3 min read
Fortis Healthcare. (Photo: Facebook/@fortishealth)
Mumbai, May 29 (IANS) Fortis Healthcare's (FHL) Board has decided to initiate a fresh round of bidding after the consortium of Hero Enterprise Investment Office-Burman Family Office gave its consent to reopen the bidding process.
According to a BSE filing made on Tuesday, the Board in its meeting on Tuesday "has decided to initiate a fresh, time-bound process to optimise the company's and shareholders' short and long term interests".
"Further, based on the suitability of the offers evaluated earlier, the Board has decided to invite 3 of the bidders namely Munjal-Burman Consortium, TPG-Manipal Consortium, and IHH Healthcare Berhad to participate in the process, subject to their confirming adherence to the process... no later than 5 p.m. IST on 31st May 2018," the filing said.
As per the filing, other interested parties will be able to submit their Expression of Interest (EOI) till this time.
The development comes a day after the Hero Enterprise Investment Office-Burman Family Office consortium gave its consent "to reopen the bidding process to enable the company to move ahead with the fund-raising transaction".
The offer made by the consortium was selected for the sale of the healthcare major's business on May 10.
On Monday, FHL said that it has received the consortium's consent letter stating: "While we continue to be of the firm view that our offer is the best offer received by the company till date, we believe that this situation may have arisen largely on account of the lack of information available to the stakeholders."
"... and keeping in mind the dilemma of the company, if any, we provide our consent for the company to reopen a bidding process in order to facilitate the company to expeditiously finalise and close its fund-raising so that the company's business does not suffer any further, thus ensuring that the larger interest of the company are served," said Sunil Kant Munjal and Anand C. Burman in a joint letter sent to the company.
Fortis' board had received offers from suitors such as Hero Enterprise Investment Office-Burman Family Office, Fosun Health Holdings, Malaysia's IHH Healthcare Berhad, Manipal Hospital Enterprises and Radiant Life Care for infusion of funds.
However, the company's Board on May 10 decided to recommend the offer of the Munjal-Burman consortium for sale of its business to the shareholders for their approval.
The deal envisaged an infusion of Rs 800 crore via a "Preferential Allotment of Equity Shares at Rs 167 per share or as per SEBI ICDR guidelines whichever is higher...".
It also encapsulates a "Preferential Issue of Warrants of Rs 1,000 crore at Rs 176 per share or as per SEBI ICDR guidelines whichever is higher."
Since then, three of the company's board members resigned and another one was ousted by the shareholders during a recently held Extraordinary General Meeting (EGM).
Following the EGM, new independent directors joined the company's Board.
Besides, the consortium of Manipal Health Enterprises (MHEPL) and private equity (PE) firm TPG made a "modified" new offer which values the company at Rs 9,403 crore at a share price of Rs 180 per share.
In addition, Malaysia's IHH Healthcare Berhad made an "Enhanced Revised Offer" to invest directly into the company at Rs 175 per share cost.
--IANS
rv/vd

(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)

(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)

(The Quint is available on Telegram. For handpicked stories every day, subscribe to us on Telegram)

We'll get through this! Meanwhile, here's all you need to know about the Coronavirus outbreak to keep yourself safe, informed, and updated.

Liked this story? We'll send you more. Subscribe to The Quint's newsletter and get selected stories delivered to your inbox every day. Click to get started.

The Quint is available on Telegram & WhatsApp too, click to join.

ADVERTISEMENT
Stay Updated

Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.

Join over 120,000 subscribers!
ADVERTISEMENT