Hero Enterprise Investment Office and the Burman Family Office 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.
"FHL has not given any rationale for accepting the Munjal-Burman bid and the key point is that the board was divided in its decision", said JN Gupta, founder, Shareholder Empowerment Services, a proxy advisory firm.
Here's a recap of all the offers made to Fortis Healthcare.
"The Board, by a majority, chose 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", Tempest told reporters.
A statement released from the Fortis board said, "The Board, post having the detailed discussions on the pros and cons of each offer, decided by majority, to recommend the offer of Hero Enterprise Investment Office-Burman Family Office".
The board of cash-strapped hospital chain Fortis Healthcare Ltd yesterday accepted an investment offer of Rs1,800 crore ($267.7 million) from an investment group of Hero-Burman after a bidding war by four investment groups, for an undisclosed stake.
The shareholder, who is looking for an exit at price of Rs 200 per share, said it's expecting those who have lost out on Thursday to come out with a counter offer. "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", Manipal Group's CEO Ranjan Pai said in a statement on Friday.
Shares of Fortis Healthcare fell almost 3 per cent today after the company announced that its board has picked the offer from Munjals-Burmans combine over four other suitors who made binding offers. The earlier revised offer of 10 April valued Fortis hospital business at Rs 6,061 crore.
The companys market valuation fell by Rs 208.78 crore to Rs 7,697.22 crore.
Although he didn't specify, two of the people cited above said that the most recent board members-Ravi Rajagopal, Suvalaxmi Chakraborty and Indrajeet Banerjee-voted in favour of IHH Healthcare's proposal.
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. May 1 was the deadline submitting binding offers.