Munjal-Burman out of bidding for Fortis Healthcare; Manipal-TPG files fresh bids
There is a new turn in the Fortis Healthcare bidding process, as Sunil Kant Munjal of Hero Enterprises and the Burman family of the Dabur group reportedly have backed out of the deal after months of talks
There is a new turn in the Fortis Healthcare bidding process, as Sunil Kant Munjal of Hero Enterprises and the Burman family of the Dabur group reportedly have backed out of the deal after months of talks. Now, with these two companies out of the bidding process, Malaysia's IHH Healthcare and Manipal-TPG combine reportedly have submitted fresh bids for the cash-strapped healthcare company. The reason for Munjal-Burman family combine pulling out of the bidding process has not yet been revealed.
The Fortis board had put up a fresh criteria on May 29 that the potential buyer had to make at least investment of Rs 1,500 crore into Fortis Healthcare by way of preferential allotment, according to a TOI report.
According to the new criteria set for suitors, they should have a plan for providing exit to private equity investors of diagnostic arm SRL besides acquisition of RHT Health Trust (RHT).
The company said it has received Binding Bids on July 3, 2018 and the binding bids will be evaluated by the board in consultation with its advisors.
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Fortis Healthcare earlier announced that it has initiated legal action to recover Rs 500 crore given as inter-corporate deposits (ICDs) to the firms controlled by Malvinder and Shivinder Singh, the report said. Fortis bidding has witnessed many twists and turns in the past few months. Manipal and TPG togethet made an unsolicited non-binding offer for the healthcare chain in March. Munjal-Burman combine, Malaysia's IHH Healthcare Berhad and KKR-backed Radiant Life Care had jumped into the queue subsequently.