Munjal-Burmans extend validity of their offer for Fortis Healthcare by a week

Fortis Healthcare on Monday said Sunil Kant Munjal of Hero Enterprise Investment and the Burmans of Dabur have extended the validity of their improved binding offer to acquire stake in Fortis by over a week.

The Munjal-Burmans' offer has been extended until May 4, 2018 after the bidders sent a letter to the company on April 22 extending the validity period, Fortis said in a statement to stock exchanges.

"All other terms and conditions of their improved offer remain unchanged," the statement of Fortis added.

Munjal-Burmans' improved offer will be ending on April 23

The joint offer by Munjal and Burmans is among the only two binding offers being considered by an external advisory committee set up last week to help the Fortis board finalise a deal.

The three-member expert committee, headed by former PwC India CEO Deepak Kapoor, is expected to meet on April 25 to evaluate the bids and submit its recommendation to the Fortis Board which will be meeting on April 26.

The Munjal-Burmans' team had last week raised the bid for Fortis Healthcare by Rs 250 crore, to Rs 1,500 crore.

Munjal and Burmans, as part of the revised proposal, will inject Rs 750 crore upfront to mitigate liquidity crunch as against Rs 500 crore earlier.

Under the new bid, Rs 500 crore will be infused through preferential allotment of equity shares and the balance Rs 1,000 crore through preferential issue of warrants.

The preferential allotment of warrants for Rs 1,000 crore will be done at Rs 161.60 a share whereas preferential allotment of equity shares for Rs 500 crore will be done at a price of Rs 156 a share.

Munjal and Burmans together hold around 3 per cent stake and have also said that they were doing away with the due diligence clause.

Manipal-TPG retains "right to match"

Meanwhile, CNBC-TV18 reported that Manipal-TPG retains "right to match" the highest bid for Fortis by way of earlier agreement with the latter's Board.

The channel said the deadline for outbidding Munjal-Burmans' offer ends on April 24 and Manipal-TPG may not exercise the special clause to match the bid filed by Munjal-Burmans.

If another higher bid comes by April 25, Manipal-TPG has the right to match.

Shares of Fortis gained 0.54 per cent to close at Rs 150.20 on BSE, the benchmark Sensex gained 0.10 percent to end 34,450.77 points.