Fortis Healthcare sale: Hero Enterprise wants 2 seats on board, says Sunil Munjal

Fortis Healthcare has received an improved offer from Hero Enterprise investment office and Burman family office to invest Rs 1,500 crore directly in the company, ahead of its scheduled board meeting. To know the reason behind this revision, Zee Business's Sameer Dixit did a candid interview of Sunil Munjal, Chairman of Hero Enterprise. During the talk, Munjal revealed that his group has asked for 2 board seats so that his company could have an idea about what is really happening at the level of policy-making at Fortis Healthcare. Here are the edited excerpts:

Q: You have given a revised offer to Fortis Healthcare. 

A: Our previous offer was also a good one but the revisions were made in light of company's liquidity requirements and there was an urgency in meeting the requirements. We have revised our offer from Rs 1250 crore to Rs 1500 crore. The revised proposal will inject Rs 750 crore upfront to mitigate liquidity crunch as against Rs 500 crore, which was offered earlier. In addition, the remaining Rs 1000 crore that will be infused through preferential issue of warrants. In addition, we have revised the value of the warrants to Rs 161.60 from Rs 156. 

Q: The offer made by you now seems to be more lucrative. Do you think that the revised offer will help you to raise your stake in Fortis Healthcare?

A: Naturally, we hope the same and that is the reason for the revision of the offer. Interestingly, we are not asking the company to restructure itself or demanded any outside interventions to implement the transaction. The offer is simple and can be implemented with an ease within 4-6 weeks. 

Q: What will be your first step after your stake goes up in Fortis Healthcare?

A: We are a shareholder of the company and are bidding to increase our stake in it. If asked, we will be offering suggestions to the group. However, with this large investment, we have asked for two seats on the board. This will allow us to see what is happening when it comes to policymaking and the direction in which the company is excelling. We will have an eye on investments. We want to know whether they are reaching the right place for which they were allocated? Nowhere will we be involved in the company's day-to-day activities.