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Fortis Healthcare: Munjals, Burmans throw hat in the ring

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New Delhi | Published: April 13, 2018 6:39:51 AM

Fortis Healthcare said on Thursday that it has received an unsolicited binding offer from Hero Enterprise Investment Office, controlled by the Munjal family, and Burman Family Office to invest Rs 1,250 crore in the company through the preferential allotment route.

Fortis, Fortis Healthcare, Fortis hospital, Fortis chairman, fortis offer, Manipal health, IHH healthcareFortis has already received rival offers from Manipal Health and IHH Healthcare.

Fortis Healthcare said on Thursday that it has received an unsolicited binding offer from Hero Enterprise Investment Office, controlled by the Munjal family, and Burman Family Office to invest Rs 1,250 crore in the company through the preferential allotment route. The binding offer is to invest Rs 500 crore immediately and Rs 750 crore after diligence is completed within three weeks. The offer is subject to certain conditions. The proposal is under evaluation of Fortis.

Fortis has already received rival offers from Manipal Health and IHH Healthcare. Hero and Burman group entities are shareholders of Fortis, holding about 3% in the hospital operator, according to the offer letter from the investors attached to the filing made to stock exchanges. The investors have said that Fortis requires immediate external funding and clarity about future to stabilise itself.

Hero along with Burmans had approached Fortis in March to discuss possibility of an M&A transaction but the discussions were unsuccessful as the Fortis management said the company did not have the time to offer due diligence opportunity. The investors said they have strong faith in potential of the company. Funds from the investment is to be used for payment of employee dues, repayment of loans which have matured and payment to pressing creditors. The Munjals and Burmans said the offer does not envisage any change in current structure of the company.

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