News digest: Fortis stake sale, Flipkart-Walmart deal, RJio plan, and more

From Fortis Healthcare stake sale to Reliance Jio's new Rs 199 plan, BS brings you top stories to keep up with the latest news

Takeover battle: Fortis Healthcare board opts for Munjal-Burman offer

The takeover saga at Fortis Healthcare, one of India’s leading healthcare chains, reached the culmination on Thursday, with the board choosing the Hero Enterprises-Burman Family Office offer as the best for the hospital and diagnostic chain.

“The Board, post having detailed discussions on the pros and cons of each offer, decided by majority, to recommend the offer of Hero Enterprise Investment Office-Burman Family Office (the last offer made on May 1, 2018)," Fortis Healthcare said in a statement to the BSE on Wednesday. Read more here

$16-billion deal: Walmart effect on Flipkart from second quarter of 2019

American retail major Walmart is looking at a future together with Flipkart, the e-commerce company it has bought for $16 billion, at some time in the second quarter of 2019 calendar, sources in the know said. Next April seems to be a cut-off point when the two companies are likely to have a common leader and possibly single headquarters to operate from in India.

Till then, the two will function as distinct entities and brands. A Walmart spokesperson said, “Flipkart and Walmart India will operate as distinct brands and separate operating structures with the intent to leverage the combined strengths over time. The Flipkart leadership will continue in their roles and Krish Iyer will remain as CEO of Walmart India.’’ Read more here

Binani sale: SC won't interfere, pushes Dalmia Bharat's plea back to NCLAT

The Supreme Court on Thursday showed for the second time its disinclination to intervene in the Binani Cement takeover case. Although it disposed of the plea by Dalmia Bharat for overriding the National Company Law Tribunal’s (NCLT’s) order, it asked the National Company Law Appellate Tribunal (NCLAT) to expedite hearing on Dalmia Bharat’s plea without adjournment.

Noting that Dalmia Bharat’s allegations were pending before the NCLAT, Justice Rohinton Nariman and Justice A M Sapre sent the case back to the NCLAT, and directed the tribunal to hear the case on a daily basis from May 22. Read more here

Mukesh Ambani's RJio piles on pressure with new Rs 199 postpaid plan

After capturing prepaid telecom customers, Reliance Jio has set sights on the lucrative set of postpaid users with a Rs 199 per month plan. Postpaid subscribers spend more than five times of an average pre-paid customer. Numbers shared by Telecom Regulatory Authority of India (Trai) show postpaid consumers constitute about 5 per cent of the market with an average spend of Rs 378 per month in 2017 against Rs 67.27 for prepaid users. 

Jio’s Rs 199 plan offers 25 GB of data along with free calling and free subscription of Jio apps. The plan, at almost half the price of what others are offering, is going to hit the old operators further. Read more here

Banks are designing a scheme for bailing out stressed power assets

With the Reserve Bank of India (RBI) declining any special dispensation for the power sector, leading banks are designing a scheme for bailing out stressed assets. The same might be followed during the proceedings under the National Company Law Tribunal (NCLT). The selected assets will be the ones that can meet the RBI’s 180-day deadline for completing resolution proceedings of stressed assets. 

The power ministry had asked the RBI to provide a breather to the power sector in the Insolvency and Bankruptcy Code (IBC) guidelines. The RBI, in February, mandated banks to classify even a one-day delay in debt servicing as default. Read more here