Fortis board to meet on Friday to consider fund raising

NEW DELHI: Cash-strapped Fortis Healthcare, which is within the means of finding a new investor, on Wednesday stated its board will meet on July 13 to imagine raising funds via issue of securities on a preferential allotment basis.

The corporate had won binding bids from Malaysia's IHH Healthcare and Manipal-TPG combine on July three, the last day of submission of clean round of bids known as by a newly constituted board.

Munjals-Burmans combine, which had previous emerged as the preferred suitor for Fortis Healthcare, and Radiant Life Care, on the other hand, had sponsored out.

In a regulatory filing lately, the company stated its board would meet in July 13 "to consider, and if thought fit approve raising funds through issue of securities on a preferential allotment basis".

It, on the other hand, did not reveal main points of the quantum of funds to be raised.

For months, the healthcare chain has been looking for a new investor, and on two separate cases it had authorised provides from Manipal-TPG combine and Munjals-Burmans combine handiest to scrap it and go in for fresh bidding.

As in keeping with the new standards, that was put up by the company's board on May 29, the possible purchaser had to make a minimal funding of Rs 1,500 crore into Fortis Healthcare by way of preferential allotment.

Apart from having a plan for funding the purchase of RHT Health Trust (RHT), suitors will have to also have a plan for providing go out to personal fairness investors of diagnostic arm SRL.

The taking flight of Munjals-Burmans combine and Radiant Life took place days after Fortis Healthcare introduced that it has initiated prison motion to get well about Rs 500 crore of funds given as inter-corporate deposits to the firms controlled by former promoters Malvinder and Shivinder Singh.

The loans got without board approval and sufficient collaterals.

The corporate had also mentioned that marketplace regulator Sebi has ordered a forensic probe into the company's issues.

On May 22, the company's shareholders voted out Brian Tempest from the board of administrators in an unusual general assembly (EGM).

He was among four administrators of the company whose removals have been sought by two institutional investors.

Three administrators - Harpal Singh, Sabina Vaisoha and Tejinder Singh Shergill- had resigned ahead of the EGM.

On the other hand the shareholders had voted in favour of appointments of Suvalaxmi Chakraborty, Ravi Rajagopal and lndrajit Banerjee as independent administrators at the board.

The reconstituted board then known as for fresh bidding after getting consent from the Munjals-Burmans combine, whose bid for making an investment Rs 1,800 crore was licensed by the earlier board, to enable the company to transport forward with the fund-raising transaction.
Fortis board to meet on Friday to consider fund raising Fortis board to meet on Friday to consider fund raising Reviewed by kailash soni on July 12, 2018 Rating: 5
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