Fortis Healthcare on Friday said four bidders — the Munjal-Burman combine, Malaysia’s IHH Healthcare, Manipal Health-TPG, and Radiant Life Care — will participate in a fresh auction for a stake in the hospital chain.
“…the company has received interest from various interested parties on May 31, 2018 as per the timelines specified in the invitation for transaction participation. The Board of the Company has now decided to include the following four parties in the process and has initiated various steps as outlined in the transaction process letter…” the company stated in a submission to stock exchanges BSE and NSE on Friday.
The Fortis board has also appointed with immediate effect Ravi Rajagopal, Non-Executive Independent Director, as the Chairman, the bourses were informed in a separate intimation.
Earlier this week. the Fortis board decided to initiate a fresh, time-bound process “to optimise the company's and shareholders' short and long-term interests”.
This decision followed the consent given by the Munjal-Burman duo to the Fortis board for a fresh auction. Munjal-Burman was chosen by the Board — five votes to three — after the first round of bidding.
Fortis’ shareholders favoured a fresh round of bidding as four of its eight directors who participated in the evaluation of the earlier bids, were no longer part of the board.
As per the fresh criteria, the buyers have to make a minimum investment of ₹1,500 crore into Fortis Healthcare by way of preferential allotment apart from having a plan for funding the acquisition of RHT Health Trust (RHT) and a plan for providing an exit to private equity investors of diagnostic arm SRL.