Fortis board recommends Munjal-Burmans bid for biz sale

Fortis Healthcare today said its board has recommended the offer of Hero and Burman consortium to its shareholders for sale of its business.

The company's 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, Fortis Healthcare said in a statement.

The recommendation of the Board would be placed before the shareholders for their approval.

The Munjal-Burmans combine had given their revised offer on May 1, which included an upfront equity infusion of Rs 800 crore at a price of Rs 167 per share into the company through preferential allotment, it added.

The Hero-Burman consortium had also offered a further amount of Rs 1,000 crore through preferential issue of warrants.

Fortis Healthcare had received binding offers from four entities - KKR-backed Radiant Life Care, IHH Healthcare, Manipal/TPG consortium, and Munjal and Burman family offices.

The entire exercise involved a process that witnessed deliberation and recommendation by an Independent Expert Advisory Committee (EAC) comprising Deepak Kapoor, Former Chairman of PWC (India) and Lalit Bhasin, Chairman of the Indian Society of Law Firms along with two reputed financial advisors i.e. Standard Chartered Bank and Arpwood Capital and Cyril Amarchand Mangaldas who were the legal advisors.

In addition to the recommendation provided by Arpwood Capital, they also opined on the bidding process that was followed post 27th April Board Meeting. The Board considered the views of the EAC, financial and legal advisors, and following extensive discussions arrived at this decision, Fortis said in a statement.