Munjals, Burmans submit higher bid of Rs 1,500 cr for Fortis Healthcare

New Delhi, April 19 : Sunil Kant Munjal of Hero Enterprise as wells Anand Burman and Mohit Burman of Burman family have approached the Board of Fortis Healthcare with a binding offer to invest Rs 1,500 crore directly in the company, a company statement said here on Thursday.

This offer would replace the original offer made to the Board on April 12, 2018.

On April 12, 2018 Hero Enterprise promoted by Sunil Munjal and the Burman family offered to invest Rs 1,250 crore directly in Fortis Healthcare, to bail out the cash-strapped company.

The improved binding offer, according to Munjal, is "even simpler, more attractive and faster to implement and without any due diligence."

This is a joint bid by Hero Enterprise and the Burman family, both of whom have a long-standing presence and interest in the healthcare sector.

"We will invest Rs 500 crore through preferential issue of equity shares and Rs 1,000 crore through preferential issue of warrants," said Munjal in the letter.

"Our upfront investment into the company will be Rs 750 crore. This includes Rs 500 crore through preferential issue of equity shares and Rs 250 crore, being the amount equivalent to 25 per cent of the consideration for the warrants at the time of allotment," he added.

The additional Rs 1,000 crore after the initial infusion of Rs 500 crore will come at a valuation of Rs 161.60 per share.

"We believe that our improved offer is even more compelling, and is significantly better than any other options being explored by the company.

We would like to reiterate that we are long-term investors who have a keen interest and affinity towards the Indian healthcare sector and this improved offer is a testimony to this," Burman said.

They expressed the hope that the Board would consider this "very simple" offer and put it before shareholders to take a final decision.

"In our view, this is the best offer on the table and deserves serious and urgent consideration," Munjal said.



Source: IANS