TPG-backed Manipal Health Enterprises Pvt Ltd. extended the validity of its revised offer for Fortis Healthcare Ltd. till June 6, hours after shareholders of the country’s second-largest hospital chain voted in favour of resolutions to remove old directors.
“In order to provide Fortis’ board with sufficient time to consider our new offer, we propose to extend its validity,” Manipal said in a letter. “If the modified offer is not accepted, then it shall stand automatically revoked and terminated,” said the letter Fortis filed with the exchanges.
Two institutional investors—East Bridge Capital Fund and Jupiter India Fund that own 12.04 percent in Fortis—had called an extraordinary general meeting on Wednesday to vote on seven resolutions. These included removal of four old directors—Brian Tempest, Harpal Singh, Sabina Vaisoha and Tejinder Singh Shergill—and appointing three new directors. Singh, Vaisoha and Shergill, however, quit before the shareholders voted.
All the four directors had voted in favour of the offer by Sunil Munjal’s Hero Enterprises Investment Office and the Burman family office. The hospital chain had received five offers after founder Malvinder Singh and Shivinder Singh lost control following allegations of financial irregularities. At least four of the suitors revised their bids multiple times.
Under its revised offer for Fortis, Bengaluru-based Manipal Health Enterprises proposed to invest Rs 2,100 crore at Rs 180 per share, valuing the company at Rs 9,403 crore.
Malaysia’s IHH Healthcare Bhd. too had extended the offer period of its enhanced revised proposal for Fortis to May 29 after which it will lapse. It had proposed to invest directly in the company at a per share price of Rs 175.
Mumbai-based Radiant Life Care Pvt Ltd. and China’s Fosun Group are the other suitors for Fortis.