
"The board, post having the 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.to the shareholders for approval", Fortis stated in a filing.
Mumbai: Fortis Healthcare on Thursday said its board has recommended the offer of Hero and Burman consortium to its shareholders for sale of its business.
The Munjal-Burmans have offered to invest Rs 1,800 crore in FHL through a combination of preferential issue of equity and warrants.
A day after Fortis Healthcare board selected the Munjal-Burman combine as the victor of a five-way takeover battle, a disappointed IHH Healthcare Bhd said it would seek the support of the hospital chain's shareholders.
Fortis Healthcare Ltd.'s board passed over bids backed by USA private-equity giants TPG and KKR & Co.in favor of local tycoons in the contentious battle for control of India's second-largest hospital chain.
Manipal-TPG combine and KKR-backed Radiant Life Care had also put in binding bids for Fortis.
The race to acquire Fortis Healthcare Ltd is heating up with the announcement. The remaining Rs 1,000 crore will be invested through a preferential issue of warrants, which would give them the right to buy more stake in the future at Rs 176 per share.
Sunil Munjal, chairman of Hero Enterprises, along with Dabur's Anand and Mohit Burman had sweetened their offer for Fortis on May 1, and had recently said that theirs was the easiest to implement offer.
The Burman Family Office is the private investment arm of the family that owns consumer goods company Dabur India. The duo have proposed an upfront infusion of Rs 1,050 crore directly into Fortis. Recently, in a letter to the shareholders, the four directors now in the line of fire, said that the board made a decision to consider only binding bids as "the non-binding bids involve considerable uncertainty and merely running a due diligence process does not guarantee a binding bid, which the board had wanted in the best interest of the company". Also, as per the terms of the latest offer, Manipal Hospitals will merge with FHL, as against the earlier proposal to demerge Fortis' hospitals business and merge it with Manipal Hospitals.
The fifth bidder, Fosun Health Holdings, an arm of Fosun International, which made a non-binding proposal to invest a total of Dollars 350 million (over Rs 2,295 crore) at a price up to Rs 156 per share, did not revise its offer.
Currently, the company has 45 healthcare facilities (including projects under development), around 10,000 potential beds and 314 diagnostic centres in India, Dubai, Mauritius and Sri Lanka.
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