The Fortis board was split with five out of eight Fortis Healthcare board members picking the Munjal-Burman family bid for the cash-strapped second-largest hospital chain in the country.
Fortis board on Friday said that the Munjal-Burman family bid was considered the best from a view point of risk, certainty and liquidity flowing into the company. In a press conference, board member Brian W Tempest said that the board followed 'healthy process' in order to determine the right bid.
Fortis board also said that two out of the five new board members voted in favour of the binding offer by Hero Enterprise Investment Office-Burman Family Office.
"On the board we have 3 people who have got a lot of experience with Fortis and there are 5 members who were appointed to the board a few months back. Of the five, two voted for the Munjal-Burman family bid," Tempest said at the press briefing.
Fortis board expect the deal to get shareholders' nod in 30 days. The board took the advice of the expert advisory committee, two financial organizations and two legal organizations and evaluated only four binding bids that were received.
"We started the board meeting yesterday morning at 7 o'clock and fininished at 10 o'clock at night. We actually had a mammoth board meeting. And when we concluded that we had a majority decision," Tempest said at the press briefing.
"Manipal-TPG bid was not one of the favourites," Tempest added.
Meanwhile, two Fortis shareholders have called for on extraordinary general meeting (EGM) on May 22 to decide the fate of four existing members of the board.
On SRL, Fortis board said that it has requested the resignation of Singh Brothers from SRL board and that Munjal-Burman combine would like to sit with SRL management and understand SRL business and decide which is the best way forward.
On the question of experience in managing hospitals, Tempest said that Munjal and Burman family have several investments in healthcare even if they may not have as many hospitals as other parties.
Speaking to the media after emerging as the winner for Fortis Healthcare, Sunil Munjal of Hero Enterprise said, "We would like to thank the board of Fortis... We think the offer that we bring to the table will be beneficial for everyone at Fortis - doctors, patients, shareholders, medical employees and non medical employees." Munjal added that only CCI clearance and shareholders' approval is required now.
Without disclosing in detail their vision for Fortis, Dabur's Anand Burman said that they have very explicit plans for the first 30 days, 100 days and 365 days for the company.