Fortis’ Board To Include Radiant Life In Second Round Of Bidding
The decision was taken after the board received expressions of interest from various stakeholders to bid for the medical services provider, Fortis said in an exchange filing.
In its last board meeting, Fortis had invited three bidders—the Munjal-Burman combine, TPG-backed Manipal Health and IHH Healthcare—who had submitted binding offers in the previous round to submit fresh bids for the company. It also invited interest from other bidders but said the final decision on who could bid would rest with the company.
The decision to initiate a second round of bids came after the three independent directors on the board of the hospital chain resigned, with another, Brian Tempest, was voted out by shareholders in an extraordinary general meeting on alleged conflict of interest. All four board members had backed the offer made by the Munjal and Burman family offices in the previous round. That offer now stands terminated.
KKR-backed Radiant Life had previously made a binding offer to buy the Fortis’ hospital in Mumbai’s suburban, Mulund, with an immediate equity infusion of Rs 680 crore. The proposed deal had then valued Mulund hospital assets at Rs 1,200 crore.
Fortis has been the takeover target since earlier this year when founders Malvinder Singh and Shivinder Singh lost shareholding control following allegations of siphoning funds.