Fortis Healthcare sale: Manipal-TPG extends validity of its 'modified new offer'

Fortis Healthcare (FHL) has said that a consortium of Manipal-TPG has extended the validity of its "modified" new offer to invest in the company. As per a late night BSE filing on Wednesday, FHL said that its Board has received a letter from Manipal-TPG for extending the validity of their "modified" new offer till June 6 from the earlier date of May 29. 

"We understand that the FHL board is still in the process of considering the modified new offer... in order to provide FHL board with sufficient time to consider our modified new offer, we propose to extend the validity of our modified new offer...," the Manipal Global Health Services said in a letter to the company`s Board.

On May 14, the Manipal-TPG consortium had received the "modified" new offer which proposed to values the company at Rs 9,403 crore at a share price of Rs 180 per share.

Earlier, Malaysia`s IHH Healthcare Berhad had extended the validity of its "Enhanced Revised Offer" to invest in the company to May 29.

IHH has proposed to invest directly into the company at Rs 175 per share cost.

However, the company`s Board on May 10 decided to recommend the offer of the Munjal-Burman consortium for sale of its business to the shareholders for their approval.

Fortis` board had received offers from suitors such as Hero Enterprise Investment Office, Burman Family Office, Fosun Health Holdings, Malaysia`s IHH Healthcare Berhad, Manipal Hospital Enterprises and Radiant Life Care for infusion of funds. 

In addition, the validity extension of Manipal-TPG`s offer comes as the healthcare major`s shareholders voted Director Brian W. Tempest out from the company`s Board.

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The company`s shareholders voted out Tempest during the Extraordinary General Meeting (EGM) which was held on Tuesday. The EGM had sought shareholders approval on a resolution filed by a minority shareholders` group to induct and remove certain Board members among other clearances.

The resolution had sought Fortis` shareholders approval to replace Tempest, Harpal Singh, Sabina Vaisoha and Tejinder Singh Shergill from the company`s Board.

Prior to the EGM, Non-Executive Director Harpal Singh and Non-Executive Independent Directors Shergill and Vaisoha resigned on Sunday citing personal reasons.