Fortis Healthcare directors on Wednesday came out with a statement justifying their decisions and stating that their removal, as sought by the minority shareholders, will only lead to “more turbulence and ambiguity” in the company’s functioning.
The Board will meet today to decide on which of the three takeover offers that it has in hand is best suited for the hospital chain.
Minority shareholders - National Westminster Bank Plc as Trustee of Jupiter India Fund, East Bridge Capital Master Fund Ltd and East Bridge Capital Master Fund I Ltd – had sought the removal of directors after the initial offer inked with Manipal Health Enterprises (MHE)-TPG Capital, which they said undervalued Fortis.
The shareholders were also against excluding the non-binding offers and have demanded an extraordinary general meeting (EGM), which will now be held on May 22.
In a joint statement, directors Brian W Tempest, Harpal Singh, Sabina Vaisoha and Lt Gen Tejinder S Shergill said the decision to consider only biding bids was taken 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".
Stating that a complete change of the entire Board at this time will add more turbulence and ambiguity, they said, “The resolutions are set to be voted by the shareholders on May 22, 2018, and by May 30, 2018, the company is legally obliged to declare its annual financial results.”
“Any delay in the publication of the results is the last thing that we, as members of the Board would want due to any reason,” the statement said.
At present, Fortis has binding offers from MHE-TPG, IHH Healthcare Berhad and Hero Enterprise Investment Office-Burman Family Office.
DECISION DAY
- The Board will decide today which offer is best suited for the company
- Fortis has binding offers from MHE-TPG, IHH Health, Hero Entp-Burman Family Office
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