Fortis board opts for Munjal-Burman combine's bid

The board of Fortis Healthcare today recommended the binding offer of the Munjal-Burmans combine to the shareholders after 18 months of hectic parleys with several potential investors for the sale of its business.

The board decided by majority to recommend the revised offer of Hero Enterprise Investment Office-Burman Family Office made on May 1 for an upfront equity infusion of Rs 800 crore at a price of Rs 167 per share through preferential allotment, Fortis Healthcare Ltd said in a late-night filing to the BSE.

The Munjal-Burmans further agreed to invest another Rs 1,000 crore via preferential issue of warrants priced at Rs 176 per share, it added.

Of this Rs 250 crore will be upfront, being an amount equivalent to 25 per cent of the consideration of warrants at a price of Rs 176 per share, Fortis Healthcare Ltd said.

Reacting to the development, Sunil Kant Munjal said: "We are delighted that the board has accepted our offer, which is, unarguably, the best solution."