Fortis gives more time to send binding proposals, call EGM on May 22
Manipal/TPG, as per the obligation, will get time until May 06, 2018 to revise their offer if a new binding offer is received by the board.
The board of Fortis Healthcare has delayed its decision on the selection of an entity to merge with and has given more time to potential investors to send their binding proposals. The board has also called for an extra general meeting (EGM) on May 22, 2018, as instructed by the minority shareholders. Fortis’ minority shareholders have shown less trust in the current board and had wanted to restructure it. The board has also cleared the appointments of Suvalaxmi Chakraborty, Ravi Rajagopal, and Indrajit Banerjee as board directors.
After one of the evaluation committee members resigned, the board delayed its decision by a day to Friday, April 27. However, a decision was not reached even on Friday. Considering the complex nature of bids, any decision that the board would have taken could have been in an extreme hurry. With this move, the board has bought itself and the evaluation committee some time to evaluate the bids, which is a right thing to do.
Fortis’ board has said that it will consider all the binding proposals it receives by 12 pm on May 01, 2018. Manipal/TPG, as per the obligation, will get time until May 06, 2018, to revise their offer if the board receives a new binding offer.
The Fortis Saga has continued to become messy with each passing day. Will the board take a decision soon? This will remain a question considering the complex offers that Fortis has been receiving, not to forget the pressure on the board members. The evaluation committee has also seen one exit and the remaining members have also been questioned by the minority shareholders. Only time will answer the questions that loom above Fortis’ future.