York Capital Management ups stake in Fortis to 6.25% ahead of board meet

NEW DELHI: Global institutional investment management firm York Capital Management upped its stake in Fortis Healthcare through an open market acquisition, the company told stock exchanges on Thursday. The acquisition took place on May 3, a week before the Fortis board would meet to take a call on four offers for a potential sale.

York Capital Management's acquisition gives it 6.25% of the share capital carrying voting rights in Fortis Healthcare Ltd, the Indian healthcare group told the Bombay Stock Exchange.

Share prices of Fortis on Thursday closed 1.33% higher than the previous close at Rs 152.45 apiece on the Bombay Stock Exchange, while the benchmark Sensex ended 0.21% lower.

The Fortis board is currently deliberating on offers by Manipal-TPG, IHH Healthcare, Hero Enterprise Investment Office-Burman Family Office and Radiant Life Care-KKR for a deal.

The deal agreed upon by the board is subject to shareholder approval.

Manipal-TPG was the first contender to enter into a binding agreement with Fortis on March 27, initially proposing to demerge the group's hospital business and subsequently merge it with Manipal Health Enterprises' own hospital group. The valuation of Fortis' hospital business, Rs5,000 crore then, had upset shareholders in the company.

In April, minority shareholders East Bridge Capital and Jupiter Asset Management, together holding over 12% stake in Fortis, had called for an Extraordinary General Meeting to remove four of the existing board members.

According to a joint representation made by these four board members late on Tuesday, the shareholders had said they lost confidence in the suitability, bona-fides or independence of these members. The shareholders had also alleged that the board did not satisfactorily exercise its fiduciary duties towards all shareholders and the company.