Stethoscopes hang in a nurses station in the emergency room at Perry Memorial Hospital in Princeton, Illinois. (Photographer: Daniel Acker/Bloomberg)

Fortis Board To Meet On May 10 To Consider Binding Bids

Fortis Healthcare Ltd. board will meet on May 10 to consider recommendations of an expert advisory committee on all binding bids for a possible infusion of funds or a restructuring of the company.

The advisory committee will only evaluate binding bids received till 12 p.m. on May 1, India's second largest healthcare services company said in an exchange filing. Manipal Health Enterprises Pvt. and TPG consortium can revise their offer till May 6.

In addition to the Manipal Health-TPG proposal, Fortis has binding bids from Malaysia’s IHH Healthcare Bhd., KKR-backed Radiant Life Care Pvt., and a joint offer by the Munjal family’s Hero Enterprise Investment Office and Burman Family Office.

New Directors

Fortis Healthcare’s board also approved the appointment of Suvalaxmi Chakraborty, Ravi Rajagopal, and Indrajit Banerjee, who were recommended to be appointed as directors, by National Westminister Bank Plc and East Bridge Capital Master Fund Ltd.

Fortis will hold an extraordinary general meeting on May 22 to consider the appointment of the new directors, the statement added.

This comes at a time when investors have started lining up with offers for Fortis since its founders Malvinder and Shivinder Singh stepped down following allegations of siphoning funds.

Four Binding Bids

  • Manipal Health made a revised offer on April 25, which values Fortis at Rs 6,322 crore and proposes immediate fund infusion of Rs 750 crore via debt.
  • Radiant Life Care made a revised bid for Fortis with a binding offer to acquire its hospital in Mulund in suburban Mumbai with an immediate equity infusion of Rs 680 crore.
  • IHH Healthcare also revised its proposal and made a binding offer to immediately infuse Rs 650 crore as part of an overall plan to invest Rs 4,000 crore.
  • The Munjals and Burmans made a revised offer of Rs 1,500 crore as a direct investment into the debt-ridden company.

Also read: Is The Fortis Board Focused On Value Maximisation?

A unit of Chinese conglomerate Fosun International Ltd. has submitted a non-binding offer, and sought time for due diligence.

Also read: Fortis Shareholders Call For EGM To Remove Four Directors From Its Board