Mumbai: The board of Fortis Healthcare, which has seen interest from four suitors, on Thursday decided to accept only binding offers even as it formed an expert committee to evaluate the proposals and make a final recommendation by April 26.
The healthcare chain had received binding offers from Manipal/TPG consortium, and the Munjal and Burman family offices. It had also received non-binding expressions of interests from Malaysia's IHH Healthcare Berhad and Chinese firm Fosun Health.
Fortis Healthcare's advisory committee will be chaired by Deepak Kapoor, former chairman of PwC India.
"The board has over the last many months been involved in deliberations for a potential transaction with the objective of partnering strong players that would help the company strategically and financially and towards this end has engaged with several potential investors before entering into a transaction with Manipal/TPG consortium on March 27.
"In exercise of its fiduciary duties, the board has decided to evaluate the binding offers and has appointed an advisory committee and also directed Standard Chartered Bank to assist the committee," Fortis said in a statement.
The Manipal/TPG-led consortium had raised their offer for Fortis last week to Rs 155 per share by valuing the hospital business higher at Rs 6,061 crore from Rs 5,003 crore in its initial offer on March 27.
Similarly, Hero Enterprise Investment Office and Burman Family Office have also improved their offer by proposing to invest Rs 1,500 crore directly at a valuation of Rs 161.6 per share from the earlier Rs 1,250 crore.
Malaysia's IHH Healthcare, which had offered to pick up a stake at Rs 160 per share, also proposed to infuse Rs 4,000 crore through a preferential allotment of equity shares at a price not exceeding its offer share price.
Fosun Health Holdings had proposed a primary infusion at a price up to Rs 156 per share, up to a total investment of $350 million.
Fortis said its board also took note of the requisition made by a group of shareholders, including National Westminster Bank and East Bridge Capital Master Fund, seeking removal of four directors from the board. The shareholders, who hold 12.04 per cent, have sought the removal of Brian Tempest, Harpal Singh, Sabina Vaisoha and Lt Gen Tejinder Singh Shergill.
