Fortis Healthcare extends deadline for submission of bids to July 3
As per the criteria set by the company, the buyer has to make a minimum investment of Rs 1,500 crore in FHL by way of preferential allotment.
- Jun 29, 2018,
- Updated Jun 29, 2018 4:05 PM IST
A day after Fortis Healthcare (FHL) posted a whopping 864 per cent jump in its net loss for the quarter ended March, compared to the corresponding quarter in the previous fiscal, it has announced a second extension to its ongoing bidding process.
In a regulatory filing yesterday, FHL said that the deadline for submission of Binding Bids from its suitors "stands revised to Tuesday, the July 3, 2018. Rest of the details with respect to the timings and submission remain the same".
Earlier on June 12, the company had extended the deadline to June 28 after shortlisting four entities - the Munjal-Burman combine, Manipal-TPG consortium, Malaysia's IHH Healthcare Berhad and Radiant Life Care - as possible suitors for the sale of its business.
The cash-strapped FHL has been looking for an investor for more than a year now. Manipal Health Enterprises (MHEPL) first offered to buy FHL in March but following shareholder objections to what they said was a raw deal, several other suitors threw their hats in the ring.By May, the much-wooed FHL seemed to have picked a buyer at last, but the winning bid by the Munjal-Burman combine did not get the nod of the independent directors on its board. Subsequently, FHL initiated a fresh time-bound bidding process for its sale, setting June 14 as the deadline for submitting binding bids.
As per the criteria set by the company, the buyer has to make a minimum investment of Rs 1,500 crore in FHL by way of preferential allotment. That apart, the bids must boast a plan for funding the acquisition of RHT Health Trust (RHT) and a plan for providing exit to the private equity investors of diagnostic arm SRL. The submitted bids should also be unconditional as well as mention the source of funds for the transaction and elaborate on the plans for retention of current management and employees.
The deadline extension comes against the backdrop of FHL's announcement that it has initiated legal action to recover about Rs 500 crore of funds allegedly taken out of the company by its founders, siblings Malvinder and Shivinder Singh. The external investigation that the company initiated through law firm Luthra & Luthra in February, found "systemic lapses and override of controls" in the transaction.
Earlier this month, Mint had reported that FHL's due diligence by the suitors in the race had unearthed unpaid vendors' bills of Rs 450 crore, a Rs 503 crore penalty on its subsidiary Fortis Escorts Heart Institute, as well as undisclosed land-related issues at three of its hospitals. All these factors may weigh down its valuation in the rebidding.
With PTI inputs
A day after Fortis Healthcare (FHL) posted a whopping 864 per cent jump in its net loss for the quarter ended March, compared to the corresponding quarter in the previous fiscal, it has announced a second extension to its ongoing bidding process.
In a regulatory filing yesterday, FHL said that the deadline for submission of Binding Bids from its suitors "stands revised to Tuesday, the July 3, 2018. Rest of the details with respect to the timings and submission remain the same".
Earlier on June 12, the company had extended the deadline to June 28 after shortlisting four entities - the Munjal-Burman combine, Manipal-TPG consortium, Malaysia's IHH Healthcare Berhad and Radiant Life Care - as possible suitors for the sale of its business.
The cash-strapped FHL has been looking for an investor for more than a year now. Manipal Health Enterprises (MHEPL) first offered to buy FHL in March but following shareholder objections to what they said was a raw deal, several other suitors threw their hats in the ring.By May, the much-wooed FHL seemed to have picked a buyer at last, but the winning bid by the Munjal-Burman combine did not get the nod of the independent directors on its board. Subsequently, FHL initiated a fresh time-bound bidding process for its sale, setting June 14 as the deadline for submitting binding bids.
As per the criteria set by the company, the buyer has to make a minimum investment of Rs 1,500 crore in FHL by way of preferential allotment. That apart, the bids must boast a plan for funding the acquisition of RHT Health Trust (RHT) and a plan for providing exit to the private equity investors of diagnostic arm SRL. The submitted bids should also be unconditional as well as mention the source of funds for the transaction and elaborate on the plans for retention of current management and employees.
The deadline extension comes against the backdrop of FHL's announcement that it has initiated legal action to recover about Rs 500 crore of funds allegedly taken out of the company by its founders, siblings Malvinder and Shivinder Singh. The external investigation that the company initiated through law firm Luthra & Luthra in February, found "systemic lapses and override of controls" in the transaction.
Earlier this month, Mint had reported that FHL's due diligence by the suitors in the race had unearthed unpaid vendors' bills of Rs 450 crore, a Rs 503 crore penalty on its subsidiary Fortis Escorts Heart Institute, as well as undisclosed land-related issues at three of its hospitals. All these factors may weigh down its valuation in the rebidding.
With PTI inputs