Decks clear for Hero-Munjal consortium to takeover Fortis

Fortis board, by majority, recommends the bid

May 10, 2018 11:31 pm | Updated May 11, 2018 09:07 pm IST - Chennai

 A Fortis hospital building is pictured in New Delhi, India, May 6, 2018.

A Fortis hospital building is pictured in New Delhi, India, May 6, 2018.

The Hero-Munjal consortium has emerged winner in the race for Fortis Healthcare Ltd.

The board of directors of Fortis has decided to recommend the binding offer of the Hero and Munjal consortium.

It is a majority decision by the board, Fortis said in a late night release.

“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.”

Binding offers were been made by IHH Healthcare Berhad, Manipal /TPG consortium, Radiant Life Care Private Limited and Hero Enterprise Investment Office and Burman Family Office.

“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 (i.e. the last offer made on May 1, 2018) for an upfront equity infusion of ₹800 crore at a price of ₹167/share or SEBI (Issue of Capital and Disclosure Requirements) (“SEBI ICDR”). Pricing Guidelines, whichever is higher, into the company through preferential allotment and a further amount of ₹1,000 crore through preferential issue of warrants (of which ₹250 crore will be upfront being an amount equivalent to 25% of the consideration of warrants) at a price of ₹176/share or SEBI ICDR Pricing Guidelines, whichever is higher, to the shareholders for approval,” Fortis said in its filing with BSE.

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