Fortis board to recommend Hero-Burman bid for shareholders approval

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The entire exercise for selecting the Hero and Burman consortium involved a process that witnessed “deliberation and recommendation” by an independent EAC

Fortis Healthcare said that its board will recommend the binding offer of the Hero-Burman consortium for shareholders’ approval.

According to the healthcare major, the entire exercise for selecting the Hero and Burman consortium involved a process that witnessed “deliberation and recommendation” by an independent Expert Advisory Committee (EAC).

“The Board considered the views of the EAC, financial and legal advisors, and following extensive discussions arrived at this decision,” the company said in a late night statement on Thursday.

The EAC consisted of Deepak Kapoor, Former Chairman, PWC (India) and Lalit Bhasin, Chairman of the Indian Society of Law Firms, along with two financial advisors – Standard Chartered Bank and Arpwood Capital – while Cyril Amarchand Mangaldas were the legal advisors.

The company’s board had received offers from suitors such as Hero Enterprise Investment Office and the Burman Family Office, Fosun Health Holdings, IHH Healthcare Berhad, Manipal Hospital Enterprises and Radiant Life Care for infusion of funds.

The deal envisages 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.”