Munjals-Burmans combine consent reopening Fortis bidding process

Fortis Healthcare on Monday said the Munjals-Burmans combine, whose bid for investing Rs 1,800 crore was approved by its board, have consented to reopening the bidding process to enable the company to move ahead with the fund-raising transaction.

The development comes at a time when there is uncertainty over the process of Fortis sale, as four of the directors, who had approved the Munjals-Burmans bid, are no longer on the company's board.

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 reopen 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 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 reopen of the bid process".

While expressing "deep anguish and regret" over the matter, Munjals-Burmans combine said they have has consented to reopening of the bidding process "in order to facilitate the company to expeditiously finalise and close its fund-raising so that the company's business does not suffer any further".

Fortis Healthcare, however, did not clarify whether it will reopen the bidding process.

When contacted, a Fortis spokesperson said the company's board will take a decision on the matter without specifying when the meeting would take place.

"Necessary intimation to the regulator and stock exchanges would be given accordingly," the spokesperson added.

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.

In their letter, Munjals-Burmans combine said "this situation may have arisen largely on account of the lack of information available to stakeholders.

The Munjals-Burmans combine said it expects the re-bidding process to be conducted in a fair and transparent manner, with full clarity to all stakeholders and bidders regarding the criteria and objectives which will be considered relevant by the company for this purpose, and with equal information being available to all bidders.