Fortis board initiates fresh bidding process, bidders will get 10 days to do due diligence

Fortis Healthcare  | In the September quarter, Rakesh Junjhunwala held a 2.65 percent holding in the stock, and FIIs have increased its stake to 41.04 percent from 40.98 percent in the June quarter. In FY21 so far the stock price has risen 0 percent to Rs 125.70 as on October 26.

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26 Aug, 2025 12:21

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Moneycontrol News
The board of Fortis Healthcare on Tuesday mutually terminated Munjal-Burman's offer and decided to call for fresh bids for sale of the company.

The board invited interested parties to submit fresh expression of interest (EOI) by May 31. Based on the EOI submitted, the Board will shortlist the bidders on June 1.

The board also decided to invite original three bidders, namely Munjal-Burman Consortium, TPG-Manipal Consortium, and IHH Healthcare to participate in the process.

Bidders will then be provided 10 days for financial and legal due diligence and an opportunity to interact with the management and advisors who have conducted vendor due diligence.

As part of the due diligence, Fortis will give access to data room comprising information related finances, litigation and update on pending investigation.

Contents of binding bids

Binding bids to be submitted by the bidders should have features such as minimum investment of Rs 1,500 crores into Fortis by way of preferential allotment; plan for funding of RHT Health Trust (RHT) acquisition, having long stop date of September 30; plan for providing exit to private equity investors of SRL; bids to be unconditional except for the regulatory approvals; bids to include sources of funds to finance the transaction and plans for retention of current management and employees.

Evaluation Criteria

Fortis board said it will evaluate the binding bid, in consultation with its financial advisors and legal advisors using criteria like Commercial terms such as valuation, quantum of investment and schedule thereof; Plans to address FHL’s near term liquidity requirements, long term strategic requirements including for providing exit to PE investors of SRL and RHT acquisition; Bidder’s vision and value proposition for the Company; and
Deal certainty including simplicity of transaction structure, timeline, regulatory approvals required and financing arrangement.

Fortis said it had appointed Standard Chartered Bank and Arpwood Capital as financial advisors to the transaction; and Cyril Amarchand Mangaldas and Vaish Associates as legal advisors.

Shares of Fortis dropped 1.78 percent to close at Rs 143.85 on BSE, while the benchmark Sensex declined 0.61 percent to end 34,949.24 points.