Fortis stake sale: Board of directors agree to form independent panel to evaluate all proposals

New Delhi: The board of directors of Fortis Healthcare have decided to form a panel to evaluate various bids. The board will be headed by former PWC chairman Deepak Kapoor while Standard Chartered has been roped in to assist the expert panel.

Additionally, Fortis has appointed Rohit Bhasin as its director with immediate effect. However, the board will seek shareholders' approval to name more directors. The Board will now again meet on April 26 to decide further course of action.

Fortis has received an improved binding offer from Hero Enterprise Investment Office and Burman Family Office to invest Rs 1,500 crore directly in the company.

The Munjals and Burmans have offered to invest Rs 500 crore through preference issue of equity shares and Rs 1,000 crore through preferential issue of warrants, based on the current business and financial position of the company. Munjals and Burmans have offered to invest Rs 750 crore upfront.

Meanwhile, in a late night filing on Wednesday, Fortis said it has also received a supplemental proposal from Malaysia's IHH Healthcare Bhd.

Group entities of Hero Enterprise Investment Office led by Sunil Kant Munjal and the Burman family of the Dabur Group currently hold around 3 per cent stake in the healthcare chain.

Last week, Fortis had an "unsolicited binding offer" from Hero Enterprise Investment Office and Burman Family Office to invest Rs 1,250 crore in the company through preferential allotment route.

As per the improved offer letter, allotment and pricing for the preferential issue of equity shares for Rs 500 crore shall be as per Sebi ICDR guidelines or Rs 156 per share, which is higher.

Allotment and pricing for the preferential issue of warrants for Rs 1,000 crore shall be as per Sebi ICDR guidelines or Rs 161.60 per share, which is higher, it added.

The offer letter stated that utilisation of proceeds from the preferential issue of equity shares for Rs 500 crore shall only be for the purpose of payment of employee dues, repayment of loans which have matured and payment to the most pressing creditors and lenders.

IHH Healthcare Bhd, Manipal Health Enterprises Pvt Ltd, Burmans and Munjals (jointly) and Chinese firm Fosun Health Holdings are in the race for buying Fortis.

IHH offered a price of 160 per share which valued the company at Rs 6,061 crore.

The Malaysian firm's offer had come a day after Sunil Kant Munjal-led Hero Enterprise Investment Office and Burman Family Office offered to invest Rs 1,250 crore in the healthcare chain at up to Rs 156 per share.

Fortis has also received an unsolicited non-binding expression of interest from Fosun Health Holdings Ltd, an arm of Fosun International Ltd, with a proposal of primary infusion at a price up to Rs 156 per share up to a total investment of USD 350 million (over Rs 2,295 crore).

Manipal had raised its offer for Fortis last week to Rs 155 per share by valuing the hospital business higher at Rs 6,061 crore, from Rs 5,003 crore initially.

With PTI Inputs