INSUBCONTINENT EXCLUSIVE:
victory in a hotly contested race that saw the combine beating out bids by TPG-backed Manipal Hospitals, IHH Healthcare and Radiant Life
The decision was made late on Thursday evening following a marathon meeting during which the board considered the recommendations of an
advisory committee it had set up last month to evaluate binding proposals, the company said in a statement
Hero Enterprise and the Burman family of the Dabur group have offered to invest Rs 1,800 crore directly into Fortis Healthcare through the
preferential allotment of equity and
warrants
Provided all warrants are converted into shares, the infusion will see the joint bidders picking up a 16.80% stake in Fortis Healthcare
However, the board was divided on the decision, sources said
While the original members of the board supported the Munjal-Burman offer, the newly appointed ones were against it
This could not be independently verified.
Suvalaxmi Chakraborty, Ravi Rajagopal and Indrajit Banerjee, were recently inducted onto the
Fortis board after they were nominated by East Bridge Capital and Jupiter Asset Management, a group of minority shareholders that had sought
the removal of existing directors Brian Tempest, Tejinder Shergill, Sabina Vaisoha and Harpal Singh
College in Ludhiana, while the Burman family have successfully built large-scale healthcare enterprises including Dabur Pharma, HealthCare
Standard Chartered Bank and Arpwood Capital were financial advisors and Cyril Amarchand Mangaldas was legal advisor to Fortis.
IHH, KKR and
Over the past month, the Munjal-Burman combine competed with binding offers by Manipal-TPG, IHH Healthcare and Radiant Life Care-KKR.
On
April 19, the Fortis board had set up an expert advisory committee to deliberate on all binding offers for Fortis that do not require due
The board met on Thursday to take a call on these offers.
In April, the Burman family also purchased warrants in Religare Enterprises that
on conversion would give them a 9.9% stake in Religare
The warrants were issued to three of their companies on a preferential basis
