A new twist has been added to the battle for takeover of Fortis Healthcare with the minority shareholders pressing for convening of an extra-ordinary general body meeting.
This fresh turn comes just a day before the board of directors of Fortis meet to decide on the bids (i.e. April 19).
The company has received a special notice and requisition from National Westminster Bank Plc as Trustee of Jupiter India Fund (as represented by Jupiter Asset Management Limited as duly authorised investment manager), East Bridge Capital Master Fund Ltd., and East Bridge Capital Master Fund I Ltd., shareholders of company holding an aggregate of 12.04% of the paid-up capital of the company, for convening an extra-ordinary general meeting for the following purposes:
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1. Appointment of Suvalaxmi Chakraborty as an independent director of the company.
2. Appointment of Ravi Rajagopal as an independent director
3. Appointment of Mr. Indrajit Banerjee as an Independent director.
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4. Removal of Brian Tempest as director.
5. Removal of .Harpal Singh as director.
6. Removal of Sabina Vaisoha as director.
7. Removal ofTejinder Singh Shergill as director.
“The company is evaluating the same and the same shall be placed before the Board of Directors in due course,” the company said in a filing to the stock exchanges.
The race for Fortis intensified with the company receiving an unsolicited non-binding expression of interest from Fosun Health Holdings Limited, a wholly-owned subsidiary of Fosun International Limited, on Tuesday.
The offer comes with a proposal of primary infusion at a price up to ₹156 a share, subject to due diligence to be completed within three weeks, up to a total investment of $ 350 million (including a preliminary investment of up to ₹100 crore).
Interestingly enough, the Fosun offer comes just a couple of day before the board of Fortis meets to decide on the bids. The board is scheduled to convene on April 19.
Fosun had indicated that it could immediately provide ₹100 crore to Fortis to take care of its immediate cash needs within the next 45 days, including the option of immediately subscribing to a debt instrument. This money could be infused provided Fortis agreed to extend a short one month of exclusivity to undertake due diligence and negotiate the deal, the Chinese firm said.
The race for Fortis took an interesting turn when Malaysia’s IHH Healthcare Berhad offered to buy the company at ₹160 per share. Earlier last week, Fortis received a sweetened offer from Manipal Hospitals Enterprises Pvt. Ltd. and TPG at ₹155 per share. Hero Enterprise Investment Office and the Burman Family Office have also made a binding offer to invest a total of ₹1,250 crore through a preferential share allotment at at least ₹156 a share.