Fortis Healthcare: Munjal - Burman combine agrees to reopening of bidding

In a filing with the stock exchanges, Fortis Healthcare said it has received a letter from Hero Enterprise Investment Office and Burman Family Office consenting to re-open the bidding process to enable Fortis to close the transaction.   

The Mujals of HeroMorcorp and the Burmans of Dabur had teamed up to bid for Fortis Healthcare and were among the four bidders for the hospital chain. The other bidders included  Manipal -TPG,  IHH Healthcare of Mlaysia, and KKR-backed Radiant Life Care.  

The Munjal-Burman combine's bid for investing Rs1,800 crore was approved by its board that included former chairman Brian Tempest and three others who resigned subsequently, prior to the Fortis extraordinary general meeting on 22 May to approve of the transaction.

With the Fortis board having been reconstituted,  the Munjal-Burman combine has consented to re-opening the bidding process to enable the company to move ahead with the fund-raising transaction. 

In a  letter to the board of directors, Munjal-Burman combine said, “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”.

While expressing “regret” over the matter, the  Munjal-Burman combine said they have has consented to re-opening of the bidding process “in order to facilitate the company to expeditiously finalise and close its fund-raising so that the company’s business does not suffer any further”. 

According to reports Yes Bank, with 15-per cent stake in Fortis had expressed concerns over the bidding process. Yes Bank asked the Fortis’ board to consider revised bids for the company submitted to maximise value for investors.