The board of Fortis Healthcare Ltd late on Thursday approved a binding offer from Sunil Munjal’s Hero Enterprise and Dabur chairman Anand Burman’s family office.

As per the current offer, the Hero-Burman consortium will infuse Rs800 crore through a preferential allotment of equity shares at Rs167 a share. The group will put in another Rs1,000 crore through warrants at Rs176 per share.

“The recommendation of the Board would be placed before the shareholders for their approval," the board said soon after the meeting.

With this, the board has set aside competing bids from the TPG Capital-Manipal Hospitals combine and Malaysia-based IHH Healthcare Bhd. The contest saw revisions of bids from all the participants, with the Hero-Burman group’s final offer resting at Rs1,800 crore for a large minority stake in Fortis. They have also sought three seats on the board and proposed to sell diagnostics chain SRL Laboratories, a subsidiary, and use its proceeds to buy assets of RHT Holdings, a trust which holds Fortis’s real estate assets.

The decision to select the Hero-Burman bid was taken following recommendations by an independent expert advisory committee (EAC) comprising Deepak Kapoor, former chairman of PwC India and Lalit Bhasin, chairman of the Indian Society of Law Firms, along with two financial advisers—Standard Chartered Bank and Arpwood Capital and Cyril Amarchand Mangaldas who were the legal advisers. “The board considered the views of the EAC, financial and legal advisers, and following extensive discussions arrived at this decision," the board said.

The EAC had to decide between three offers, which have been made by TPG-backed Manipal Hospitals, Malaysia’s IHH Healthcare and a Sunil Munjal-led unnamed entity.

As per the evaluation process outlined by Fortis board, the EAC was to have an in-person meeting with bidders to understand the rationale and the justification of the offers made by all the parties that had submitted the binding bids.

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