Munjal-Burman duo extend validity of revised offer to buy Fortis

Fortis Healthcare Ltd has announced the validity extension of a revised binding offer from the Hero Enterprise Investment Office of the Munjal family and the Burman Family Office of consumer goods firm Dabur to buy the hospital chain till May 4.

The company said in a stock exchange disclosure that the decision was made in light of Fortis announcing last Thursday that it would form a panel to evaluate all binding offers, as five suitors vie for India’s second-largest hospital chain.

The expert advisory committee will submit its recommendations by the coming Thursday. The panel is chaired by Deepak Kapoor, former chairman and chief executive officer of consultancy firm Price Waterhouse Coopers, India.

The revised binding offer made last Thursday from Hero Enterprise and the Burmans entail an investment of Rs 1,500 crore in Fortis, up from Rs 1,250 crore proposed earlier.

The revised offer is for investing Rs 500 crore through preferential shares and Rs 1,000 crore via warrants. The first offer, made the previous week, involved an infusion of Rs 500 crore and Rs 750 crore after due diligence. The Munjal-Burman combine is also seeking two board seats.