Mumbai, May 28 (IANS) Fortis Healthcare (FHL) on Monday said that the consortium of Hero Enterprise Investment Office-Burman Family Office has given its consent "to reopen the bidding process to enable the company to move ahead with the fund-raising transaction".
The offer made by the consortium was selected for the sale of the healthcare major's business on May 10.
According to BSE, FHL received the consortium's consent letter on Monday.
"While we continue to be of the firm view that our offer is the best offer received by the company till date, we believe that this situation may have arisen largely on account of the lack of information available to the stakeholders," said Sunil Kant Munjal and Anand C. Burman in a joint letter sent to the company.
"... and keeping in mind the dilemma of the company, if any, we provide our consent for the company to reopen a bidding process in order to facilitate the company to expeditiously finalise and close its fund-raising so that the company's business does not suffer any further, thus ensuring that the larger interest of the company are served."
Fortis' board had received offers from suitors such as Hero Enterprise Investment Office-Burman Family Office, Fosun Health Holdings, Malaysia's IHH Healthcare Berhad, Manipal Hospital Enterprises and Radiant Life Care for infusion of funds.
However, the company's Board on May 10 decided to recommend the offer of the Munjal-Burman consortium for sale of its business to the shareholders for their approval.
The deal envisaged an infusion of Rs 800 crore via a "Preferential Allotment of Equity Shares at Rs 167 per share or as per SEBI ICDR guidelines whichever is higher...".
It also encapsulates a "Preferential Issue of Warrants of Rs 1,000 crore at Rs 176 per share or as per SEBI ICDR guidelines whichever is higher."
Since then, three of the company's board members resigned and another one was ousted by the shareholders during a recently held Extraordinary General Meeting (EGM).
Besides, the consortium of Manipal Health Enterprises (MHEPL) and private equity (PE) firm TPG made a "modified" new offer which values the company at Rs 9,403 crore at a share price of Rs 180 per share.
In addition, Malaysia's IHH Healthcare Berhad made an "Enhanced Revised Offer" to invest directly into the company at Rs 175 per share cost.
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