Fortis battle: Why largest shareholder Yes Bank is confident of a good resolution

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Published: April 30, 2018 1:48:27 PM

Fortis battle: Amid a raging battle to acquire the assets of Fortis, with major suitors revising their bids to better the other, the hospital chain’s largest shareholder Yes Bank is confident of a good resolution.

“End of the day, it will fetch great value for all minority as well as other investors,” Rana Kapoor of Yes Bank said.

Fortis battle: Amid a raging battle to acquire the assets of Fortis, with major suitors revising their bids to better the other, the hospital chain’s largest shareholder Yes Bank is confident of a good resolution. “The best winner will takeover the asset. It’s a very attractive asset , and it will repay all the lenders,” Rana Kapoor, MD and CEO of Yes Bank told CNBC TV18, adding that the intention of the board is very good. “I’m deeply convinced there will be a good resolution on this. We are not active in the process, but what we are observing is that there is improving transparency. End of the day, it will fetch great value for all minority as well as other investors,” he told the channel. Yes Bank holds 15.14% in Fortis Healthcare, as at the end of March-18.

Sharing his take on the best structure for the deal, Rana Kapoor explained, “the main holding company should be bought out intelligently. The future businesses can then be adjusted with new buyers’ boards and shareholders approvals accordingly, there is very deep value in this asset.”

Interestingly, the healthcare chain now has four binding bids from  from four heavyweights– KKR-backed Radiant Life Care, Malaysian major IHH Healthcare, Manipal/TPG consortium and Munjal and Burman family offices. On Friday, Fortis announced that the its board will meet on May 10 to take a decision on the binding bids for the company as recommended by the expert advisory committee. Further, the company said that the committee will evaluate all binding bids received till forenoon of May 1, 2018. Following the development, the Munjal and Burman family offices have questioned the deadline extension.

“With regard to Fortis, we had assumed that the final bids have been submitted and only review to choose the best offer was pending. We were a bit surprised to learn that everyone has one more chance to bid/re-bid,” Sunil Munjal said in a statement on Sunday. Further, the  chairman of Hero Enterprise called for a level playing field in the process. “We still welcome this move by the Fortis board; however we strongly believe that there should be equal opportunity given to all bidders without any unfair advantage to any one party,” he added.

Interestingly, the duo have have sought to invest Rs 1,500 crore directly into Fortis, as compared to their earlier offer of Rs 1,250 crore. “Our offer is already with the company; it’s the best one which is in the larger interest of Fortis Healthcare, and all those connected with the company’s ecosystem,” Munjal and the Burmans had said in a statement.

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