Fortis bidding war, Munjals, Burmans revise offer, IHH sends clarification, KKR rumored to send offer
The beleaguered hospital chains, Fortis Healthcare, which is facing several regulatory inquiries on account of fund siphoning by its ex-promoters, has received global interests. After the domestic offers by Manipal Health and Munjals and Burmans, Fortis has also received interest from China’s Fosun and Hong Kong based IHH.
KKR-backed hospital chain Radiant Lifecare is also rumoured to be readying a bid for Fortis Healthcare on Thursday. That will make them the fifth party. Bain-Piramal Resurgence Fund are also rumoured to have some interest in the hospital chain and it will be interesting if they send an offer, making them the sixth interested party.
While Fortis, a premium hospital chain and SRL, a diagnostic chain continue to attract global interest, the corporate governance issues have marred reputation and no bidder is ready for an acquisition premium, as all prices are between Rs155-161.60 per share. Nothing quite interesting for the minority shareholders.
The minority shareholders are disappointed with the board. They are seeking an EGM to remove the existing board of directors and introduce new independent directors on the board to make decision making transparent.
Fortis’ existing board is set to meet today to review the offers, however as the board’s credibility itself is questioned, it will be interesting to see if the investors would like the proposal accepted by the existing board, in that case the battle to control Fortis continues.