Yes Bank urges Fortis to consider revised or new bids

Fortis Healthcare may consider inviting other interested companies that did not submit or revise their bids after Yes Bank urged the board to do so.

The single-largest shareholder in Fortis asked the board to consider revised bids for the company submitted after the Munjal-Burman offer was accepted to “maximise” value for investors, reported Economic Times.

Law firm Shardul Amarchand Mangaldas wrote two letters on behalf of its client Yes Bank, advising the Fortis board to take into account the reworked bids from Manipal-TPG and IHH Healthcare, said the daily.

Yes Bank held a 15.14% stake in Fortis as of March 31, according to filings on the BSE.

Yes Bank’s move comes ahead of a meeting on May 22 that will decide the fate of four board members of Fortis Healthcare.

Fortis Healthcare on Monday said three of its independent directors, Sabina Vaisoha, Harpal Singh and Lt Gen Tejinder Singh Shergill resigned from the board citing ‘personal reasons’.

Last week, Manipal-TPG combine revised their offer for the cash-strapped healthcare chain with a proposal to invest in the company at Rs 180 per share, thereby increasing valuation of the company to Rs 9,403 crore, after Fortis decided to recommend the binding offer of Burman-Munjal consortium for shareholder’s approval.

As many as five suitors were in the race for Fortis but after the company’s board decided to evaluate only binding offers, Malaysia’s IHH Healthcare Berhad, Munjal-Burmans, Manipal-TPG and KKR-backed Radiant Life Care put in their bids.

The fifth bidder, Fosun Health Holdings, an arm of Fosun International, which made a non-binding proposal to invest a total of $350 million (over Rs 2,295 crore) at a price up to Rs 156 per share, had not revised its offer.