After Fortis board chose an investment offer worth Rs 1,800 crore from the Munjal and Burman Family Office consortium in heavily contested slugfest, contenders IHH and Manipal expressed their disappointment with the firm’s board.
Battle for Fortis: After Fortis board chose an investment offer worth Rs 1,800 crore from the Munjal and Burman Family Office consortium in heavily contested slugfest, contenders IHH and Manipal expressed their disappointment with the firm’s board. “We are disappointed by the decision made by the Board of Fortis, as we believe we submitted the most compelling bid for the benefit of all Fortis stakeholders,” IHH’s Managing Director and CEO Tan See Leng said in a statement. Seng added that IHH is open to further discussions with all stakeholders, and looks forward to the support of Fortis shareholders, reported PTI.
Meanwhile, Fortis Director Brian Tempest said that the company chose Munjal-Burman bid given the certainty of liquidity flowing in to enable greater efficiency. “The Board, by a majority, decided to recommend the Hero-Burman Family offer to shareholders looking at the binding bids for the point of certainty of liquidity flowing into the company,” Brian Tempest said on Friday.
Notably, Manipal has also expressed its disappointment with Fortis board, saying that its offer had the best interest of all stakeholders in mind. “Our offer comprised a significant and necessary immediate investment, a clear strategic plan to fundamentally transform Fortis, as well as synergies from a combination with Manipal. It is now for shareholders to decide whether they will accept the board’s recommendation,” Manipal Group’s CEO Ranjan Pai said in a statement.
In the same statement, Ranjan Pai said that after many months of engagement with Fortis, including due diligence, the group is very disappointed that the board has come to this conclusion. “Manipal remains of the view that our offer proposed the most appropriate short and long-term plan for Fortis and was in the interests of all stakeholders, including shareholders,” Pai said.
Notably, Munjal and Burman had made a binding offer to invest Rs 800 crore through a preferential share issue at Rs. 167 apiece and Rs. 1,000 crore via preferential issue of warrants at Rs. 176 per warrant. Fortis has said that the recommendation of the board will be sent to shareholders for approval, Fortis said.