Munjal-Burman Group Agrees to Re-Open Bidding, Fortis Board Undecided

In a letter to the board of directors, Munjals-Burmans combine expressed "deep anguish and regret"

Fortis Healthcare on Sunday said the Munjals-Burmans combine, whose bid for investing Rs 18 billion was approved by its board, have consented to re-opening the bidding process.

In a regulatory filing Fortis Healthcare said it has received a letter from Hero Enterprise Investment Office and Burman family Officer...giving their consent to re-open the bidding process to enable the company to move ahead with the fund-raising transaction.

In a letter to the board of directors, Munjals-Burmans combine expressed "deep anguish and regret" and said "it appears that there may be indecision on the part of the company regarding the bid process, which we understand could be on account of a few shareholders indicating their preference to the company for re-open of the bid process".

Fortis Healthcare, however, did not clarify whether it will re-open the bidding process.

When contacted, a Fortis spokesperson said the company's board will take a decision on whether the bidding should be re-opened or not, without specifying when the meeting would take place.

"Necessary intimation to the regulator and stock exchanges would be given accordingly," he said.
Fortis' board of directors is scheduled to meet on May 30 to consider and approve the audited financial results for the quarter and financial year ended March 31, 2018.

Last week, Fortis board was reconstituted after its shareholders had voted out its director, Brian Tempest, from the board in the extraordinary general meeting (EGM) held on May 22.

Earlier, out of four directors whose removals were sought by two institutional investors, three directors - Harpal Singh, Sabina Vaisoha and Tejinder Singh Shergill - had resigned ahead of an EGM called to vote on the matter.

The resignations of three directors and removal of Tempest has cast a shadow over the ongoing attempt to sell Fortis as these four directors were among the five who had voted in favour of Munjals-Burmans combine's Rs 18-bn bid for the healthcare firm.

Reference - http://www.business-standard.com/article/companies/munjal-burman-group-agrees-to-re-open-bidding-fortis-board-undecided-118052800289_1.html