Hero Enterprises Chairman Sunil Kant Munjal told PTI that the Burmans-Munjals combine were hoping that their offer would be seen "as beneficial by the shareholders as much as it has been seen by the company and the board now".
The Burman Family Office and Hero Enterprise Investment Office had tabled a binding offer to invest Rs800 crore through a preferential share issue at Rs167 each and Rs1,000 crore via preferential issue of warrants at Rs176 per warrant. Recently, in a letter to the shareholders, the four directors now in the line of fire, said that the board chose to consider only binding bids as "the non-binding bids involve considerable uncertainty and merely running a due diligence process does not guarantee a binding bid, which the board had wanted in the best interest of the company".
Others who had submitted binding offers were KKR & Co-backed Radiant Life Care, Malaysian major IHH Healthcare, Manipal-TPG Capital consortium and Munjal and Burman family offices.
The Munjal-Burman offer would also purchase a further Rs10 billion rupees worth of warrants, which would give them an option to buy more stock at a price of Rs176 per share, according to the statement.
Their recommendation will now be placed before the shareholders for a formal nod.
The board decided, by majority, to recommend shareholders to approve the revised offer of Hero Enterprise Investment Office and Burman Family Office made on May 1 for an upfront equity infusion of Rs 800 crore at a price of Rs 167 per share through preferential allotment.
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The economy also created nearly 29 thousand full time jobs, while 30 thousand part time jobs were lost in April. Thomas jobless rate has fallen below six per cent for the first time since last fall.
The board of directors of Fortis has made a decision to recommend the binding offer of the Hero and Munjal consortium. Its previous offer proposed a direct infusion of Rs 1,500 crore, so the new deal is significantly sweeter. The earlier revised offer of 10 April valued Fortis hospital business at Rs 6,061 crore.
It should also be noted that Munjal and Burman also hold minority stake already in Fortis Healthcare.
The companys market valuation fell by Rs 208.78 crore to Rs 7,697.22 crore. "The due diligence is not meant to be a price adjustment mechanism for the subsequent equity infusion", it added.
Fortis initially agreed to be bought by domestic peer Manipal Hospitals with global buyout firm TPG Capital Management LP [TPG.UL], but shareholder objections and competing offers scuttled the deal.
The board's decision, however, did not go down well with investors with the company's shares tanking almost 3 per cent on the bourses. "The entire rights offer amount would be back-stopped by Radiant", the offer letter added.