Max upset over Care exclusivity ‘breach’

A person aware of the matter said Max’s petition hinges on breach of “exclusivity”. Max had the right to make an offer till 12 April, but rival bidders were approached on 11 April, this person said. (Mint)
A person aware of the matter said Max’s petition hinges on breach of “exclusivity”. Max had the right to make an offer till 12 April, but rival bidders were approached on 11 April, this person said. (Mint)

Summary

Max Healthcare’s offer for Care Hospitals had three obligations, which included a binding bid within a four-week timeline, a second person with knowledge of the filing said. These obligations were not met, the person said on the condition of anonymity.

MUMBAI : Max Healthcare Institute Ltd has moved the Bombay high court to initiate arbitration proceedings against the shareholders of Hyderabad-based Care Hospitals. Max had made a binding offer to buy Care Hospitals, which was not accepted by its shareholders. The court will hear the petition on Tuesday.

A person aware of the matter said Max’s petition hinges on breach of “exclusivity". Max had the right to make an offer till 12 April, but rival bidders were approached on 11 April, this person said.

Max Healthcare’s offer for Care Hospitals had three obligations, which included a binding bid within a four-week timeline, a second person with knowledge of the filing said. These obligations were not met, the person said on the condition of anonymity.

Evercare has filed a response to Max’s petition noting Max’s binding offer was lower than previously offered and made after the deadline, the person cited above said.

The matter reached court because Blackstone Inc. had made a binding bid, offering a higher price, and is closer to clinching the deal, the person cited above added.

“The petition has been filed seeking interim measures of protection and preservation in respect of the contractual rights available to the company prior to the commencement of arbitration against the respondents.," the Max Healthcare filing said. Max declined to comment. Blackstone and Care Hospitals did not respond to a request for comment.

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