Three Directors of Fortis Healthcare resign before Tuesday's EGM

Fortis Healthcare (FHL) has informed that three of its Directors have resigned due to personal reasons.

According to the company, Non-Executive Director Harpal Singh, Non-Executive Independent Director Tejinder Singh Shergill and Non-Executive Independent Director Sabina Vaisoha resigned on Sunday.

The development assumes significance as the three directors faced a resolution filed by a minority shareholders' group to remove them from the company's Board.

The resolution seeks Fortis' shareholders approval to replace Brian W. Tempest, Harpal Singh, Vaisoha and Shergill from the company's Board.

Earlier, the healthcare major had disclosed its plans to hold, on May 22, an Extra-ordinary General Meeting (EGM) of its shareholders to approve a proposal by a minority shareholders' group to induct and remove certain Board members.

On May 9, the Directors in a representative note told the company's shareholders that changing the composition of FHL's Board at this juncture will add to more "turbulence and ambiguity" for the firm.

Besides, the resignation comes after the Board on May 10 decided to recommend the offer of the Munjal-Burman consortium for sale of its business to the shareholders for their approval.

The company had said that the entire exercise for selecting the consortium involved a process that witnessed "deliberation and recommendation" by an independent Expert Advisory Committee.

As per the deal, the Munjal-Burman consortium will infuse an up front equity worth Rs 800 crore at a price of Rs 167 per share through preferential allotment. The consortium has also offered a further amount of Rs 1,000 crore through preferential issue of warrants.

Fortis' board had received offers from suitors such as Hero Enterprise Investment Office along with Burman Family Office, Fosun Health Holdings, Malaysia's IHH Healthcare Berhad, Manipal Hospital Enterprises and Radiant Life Care for infusion of funds.

--IANS

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