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The Fortis board, in its meeting on Friday, also cleared the appointment of three independent directors. Photo: Ramesh Pathania/Mint
The Fortis board, in its meeting on Friday, also cleared the appointment of three independent directors. Photo: Ramesh Pathania/Mint

Fortis extends bidding deadline, Manipal-TPG combine keeps right to match rival bid

The Fortis Healthcare board will now meet on 10 May to consider the recommendations of its external advisory committee

New Delhi: Fortis Healthcare Ltd has decided to give more time to potential investors to send binding proposals, the company informed exchanges early Saturday.

The board will now meet on 10 May to consider the recommendations of its external advisory committee (EAC), formed to evaluate the binding bids. The EAC will consider all binding bids till 1 May, the board said.

However, the frontrunner—Manipal Health Enterprises Pvt. Ltd (MHEPL), backed by TPG— will be allowed to revise the offer till 6 May.

The company’s board, in its meeting on Friday, also cleared the appointment of three independent directors.

“The EAC will only consider evaluating all binding bids (whether the current/improvised/modified or new) received by the Company till 12:00 Noon, IST ‪on May 01, 2018," a submission made by Fortis Healthcare to the National Stock Exchange and BSE stated. The company added that “In line with the obligations towards Manipal and TPG consortium, if any new or modified binding bids are received anytime till 12.00 Noon on May 01, 2018; Manipal and TPG consortium have the ability to revise their offer till May 06, 2018."

The board could not discuss the proposed bids on Thursday, as scheduled earlier, due to the resignation of Renuka Ramnath, a member of the EAC. She resigned a day before the committee was to table its report of recommendations to the board.

The EAC chaired by Deepak Kapoor, former chairman & CEO, PwC India and Lalit Bhasin, president, Society of Indian Law Firms & Managing Partner, Bhasin & Co will now assess the binding bids and give their recommendations to the Fortis board by 1 May.

The winning bid, once approved by the board, will need to be cleared by shareholders in an extraordinary general meeting (EGM) to be held ‪on 22 May.

The Fortis board, in its meeting that lasted till late Friday night, approved the appointment of Suvalaxmi Chakraborty, Ravi Rajagopal and Indrajit Banerjee as additional directors (independent category) with immediate effect.

The three new independent directors were recommended shareholders of the company—National Westminster Bank Plc as Trustee of Jupiter India Fund, East Bridge Capital Master Fund Ltd and East Bridge Capital Master Fund I Ltd.

The board also discussed the way forward for Infusion of funds into the hospital operator. Additionally, the board instructed the management to appoint a second independent financial advisor to assist and advise the board with respect to the bids.

The board so far has taken the services of Cyril Amarchand Mangaldas as legal advisor and Standard Chartered Bank as the financial advisor.

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