Home >Companies >News >Fortis board shortlists 4 out of 5 original bidders for sale process

New Delhi: Fortis Healthcare Ltd on Friday said it has included in the new bidding process four out of five entities that had originally placed a bid for the assets of the beleaguered hospital chain in April.

“The company has received interest from various interested parties on 31 May 2018 as per the timelines specified in the invitation for transaction participation," Fortis said in a statement to stock exchanges.

It said the company’s board has decided to include Hero Enterprise Investment Office-Burman Family Office (Dabur) consortium; IHH Healthcare Berhad; Radiant Life Care backed by US private equity firm KKR; and the Manipal-TPG consortium in the bidding process.

According to the new criteria, the bidders will be given 10 days for financial and legal due diligence, following which they will have to submit bids by 14 June. The buyers will have to make a minimum investment of 1,500 crore in Fortis Healthcare by way of preferential allotments, apart from having a plan for funding the acquisition of RHT Health Trust and another for providing exit to PE investors.

“We have confirmed our participation in the rebid process for Fortis Healthcare. We continue to believe that Manipal, together with TPG, is the best partner for Fortis, and are confident that we will be able to address the immediate needs of the company, while also creating long-term value for Fortis shareholders. We look forward to having the opportunity to reiterate to the Fortis board and management the strength and significant synergies available to Fortis through a combination with Manipal," Manipal Health Enterprises Pvt. Ltd said in a statement.

Chinese pharma firm Fosun, the fifth bidder, was left out of the race as it did not submit a binding offer.

Earlier this week, Fortis Healthcare initiated the fresh time-bound bidding process after Hero Enterprise chairman Sunil Munjal and Dabur India Ltd chairman Anand Burman gave their consent for the company to re-open the process so that it could “expeditiously" finalize and close its fundraising.

On 22 May, Fortis Healthcare shareholders approved a resolution to remove Brian Tempest from the board and appoint three new directors, indicating they were not happy with the sale process.

An extraordinary general meeting of the Fortis shareholders was held to vote on the removal of its four directors. Three of the four directors — Lt Gen Tejinder Singh Shergill, Harpal Singh and Sabina Vaisoha—had already resigned. Only Tempest, the fourth director, continued to be on the board at the time of voting.

Significantly, all four had voted in favour of the offer by Hero-Burman consortium, whose bid for investing 1,800 crore was approved by the board.

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