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Fortis Healthcare may reopen bidding process

Sunil Munjal, Burmans write to healthcare chain giving consent for fresh bidding

Published: 29th May 2018 01:06 AM  |   Last Updated: 30th May 2018 05:59 AM   |  A+A-

Fortis Healthcare.

Express News Service

NEW DELHI: Fortis Healthcare on Monday said that it had received a letter from Sunil Kant Munjal of Hero Enterprises and the Burman family of the Dabur group, wherein the duo, after getting their bid approved by the board, had given their consent to reopening of the bidding process for the healthcare chain.“It appears that there may be indecision on the part of the company regarding the bid process, which we understand could be on account of a few shareholders indicating their preference to the company for re-open of the bid process,” Munjal and Anand Burman told Fortis in the letter.

The duo told Fortis that they gave their consent to the company to reopen the bidding process so that the company could expeditiously finalise and close its fundraising.The move comes at a time when some key shareholders in Fortis have asked the company to reconsider other offers.The Fortis board had on May 10, by a majority (5-3) decision, recommended the Munjal-Burmans offer of `1,800 crore.

However, the decision did not go down well with some of company’s key shareholders. Munjal-Burman, in their letter, said that this situation could have arisen due to lack of information available to stakeholders.
Fortis Healthcare, however, did not clarify whether it will reopen the bidding process. A spokesperson said the company’s board will take a decision on whether or not the bidding should be reopened, without specifying when the meeting would take place.

The Fortis board of directors is scheduled to meet on May 30 to consider and approve the audited financial results for the quarter and financial year ended March 31, 2018. The Fortis board was reconstituted after its shareholders voted out director Brian Tempest from the board in an extraordinary general meeting on May 22.

Another major development last week was when a report said that Yes Bank, holding a 15.14 per cent stake in Fortis, had asked the board to consider revised bids for the hospital chain. Manipal-TPG, after showing disappointment over the May 10 board decision, has revised their offer.

Key developments
The Fortis board had on May 10 recommended the Munjal-Burmans offer of J1,800 crore.
The decision did not go down well with some of company’s key shareholders. 
Munjal-Burmans have agreed to reopening of bidding
Fortis Healthcare, however, has not clarified whether it will reopen the bidding process. 



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