Renuka Ramnath quits Fortis advisory panel, move may delay sale process

The decision on finalising a buyer for Fortis is going to take longer, as Renuka Ramnath (pictured), a member of the advisory committee to evaluate bids received for it, resigned on Wednesday — a day before the crucial board meeting of the company. 

Ramnath opted out right before the committee was to submit its recommendation to the Fortis board. Sources close to the development said the three-member committee did not meet on Wednesday to evaluate the proposals as Ramnath had already put in her papers. 

Another source said the process to select a bid for Fortis was likely to be a protracted one.     

This might be a reason why Ramnath chose to opt out as she felt she would not be able to commit for the longer term. 

In a notification to the BSE, Fortis Healthcare on Wednesday said Ramnath had excused herself “due to her pre-occupation”. “The same will be tabled before the board at the scheduled meeting… for their consideration and the vacancy so caused shall be filled,” the notification said.

The Fortis board had decided to form an advisory committee led by former PwC chairman and chief executive officer (CEO) Deepak Kapoor to evaluate the multiple bids that have come in for the hospital assets on April 19. The committee would be considering only binding offers, Fortis had said at that time.

Apart from Kapoor and Ramnath, Lalit Bhasin was also appointed to the committee. Ramnath is a former managing director and CEO of ICICI Venture and Bhasin is president, Society of Indian Law Firms, and managing partner, Bhasin & Co.