Hero-Burman combines agrees to reopen bidding for Fortis
The move comes in the wake of concerns expressed by shareholders over the decision of the board to pick the consortium ahead of others.
The move comes in the wake of concerns expressed by shareholders over the decision of the board to pick the consortium ahead of others.
The consortium comprising Hero Enterprise Investment Office and Burman Family Office has given its consent to Fortis Healthcare Ltd for reopening the bidding process.
The consortium, it may be recalled, has been picked by the board of Fortis for the takeover of the company.
The consortium’s move comes in the wake of concerns expressed by a section of the shareholders over the decision of the board to pick the consortium ahead of other stronger bidders.
Early this month, the board of Fortis approved the consortium’s offer to invest ₹ 1,800 crore.
In a letter to the company’s board on Monday, the Hero-Burman group acknowledged stakeholders’ preference for reopening the bidding process. “We believe that this situation may have arisen largely on account of the lack of information available to stakeholders,” the consortium said.
Fortis has seen five bidders making a strong pitch for the takeover of the company. Manipal-led combine sweetened its offer for a fifth time after the Hero-Burman offer was selected. IHH of Malaysia, too, extended the acceptance period for its offer.
The Hero-Burman combine said that it had decided to give its consent for the re-opening the bidding process to help Fortis “expeditiously finalise and close its fund-raising so that the company does not suffer any further”.
from The Hindu - Business https://ift.tt/2xinA59
The move comes in the wake of concerns expressed by shareholders over the decision of the board to pick the consortium ahead of others.
The consortium comprising Hero Enterprise Investment Office and Burman Family Office has given its consent to Fortis Healthcare Ltd for reopening the bidding process.
The consortium, it may be recalled, has been picked by the board of Fortis for the takeover of the company.
The consortium’s move comes in the wake of concerns expressed by a section of the shareholders over the decision of the board to pick the consortium ahead of other stronger bidders.
Early this month, the board of Fortis approved the consortium’s offer to invest ₹ 1,800 crore.
In a letter to the company’s board on Monday, the Hero-Burman group acknowledged stakeholders’ preference for reopening the bidding process. “We believe that this situation may have arisen largely on account of the lack of information available to stakeholders,” the consortium said.
Fortis has seen five bidders making a strong pitch for the takeover of the company. Manipal-led combine sweetened its offer for a fifth time after the Hero-Burman offer was selected. IHH of Malaysia, too, extended the acceptance period for its offer.
The Hero-Burman combine said that it had decided to give its consent for the re-opening the bidding process to help Fortis “expeditiously finalise and close its fund-raising so that the company does not suffer any further”.
from The Hindu - Business https://ift.tt/2xinA59
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