Fortis stake sale bids postponed to June 28; Q4 result deferred to June 25

The hospital chain's board postponed the result to consider the findings of an investigation report into controversial related party transactions.

Fortis Healthcare's proposed stake sale has been delayed yet again. The board of Fortis Healthcare has extended the date for submission of binding offers by a fortnight to June 28 as the financial accounts of last year are yet to be finalised. 

Fortis Healthcare has shortlisted four entities -- the Munjal-Burman combine, Manipal-TPG consortium, Malaysia's IHH Healthcare Berhand, and Radiant Life Care -- to bid for the sale of its business. According to the initial plan, the bids were supposed to be submitted on June 14.

The hospital chain's board was supposed to finalise fourth quarter and FY 18 accounts on Monday but it postponed the result to June 25 to consider the findings of an investigation report into controversial related party transactions.

In a stock exchange notification, Fortis said the investigation report was made available to the company last Friday and was placed before the board on Monday. The report has been shared with statutory auditors and also with Securities and Exchange Board of India, and Serious Fraud Investigation Office, the company said.

The board's audit and risk management committee in February had asked law firm Luthra & Luthra to carry out an independent investigation following allegations of fund diversion by its erstwhile promoters.

Fortis had then clarified that the company had loaned Rs 4.73 billion to certain corporate entities last year. These loans were recognised as related party transactions and repayment had commenced, Fortis had said.