Fortis Health board invites fresh bids by June 14

NEW DELHI: Fortis Healthcare on Tuesday initiated a fresh time-bound bidding process for a stake sale after terminating the offer made by the Munjal-Burman family consortium.

Meanwhile, a special committee constituted by the Delhi high court on March 22, 2017, directed Escort Heart Institute & Research Centre, a subsidiary of Fortis, to deposit an amount of Rs 503 crore in the account of the Delhi government within a month for allegedly not complying with the licence condition to give free health services to the economically weaker section. A source said Fortis would challenge the committee’s findings in court.

Unlike the previous round of bidding process, this time the Fortis board has allowed limited access to the company’s online data to carry out due diligence and submit bids by June 14.

Apart from three bidders in the fray — Munjal-Burman consortium, TPG-Manipal consortium, and IHH Healthcare Berhad — the board has also invited other interested parties, such as PE firm KKR and Chinese company Fosun to submit binding bids.

In the revised bidding process, the new board underlined that the valuation assigned to Fortis for making investment, quantum of investment and schedule of making investment would be the main parameters to select the company to acquire a stake.

The other selection criteria would be plans to address nearand long-term fund requirements of Fortis, including RHT Health Trust, and providing exit route to PE investors of SRL.

The statement said the bids must ensure a minimum investment of Rs 1,500 crore by way of preferential allotment and should also specify source of funds to finance the transactions.