Fortis Healthcare suitors look to buy shares from public, banks

Annette Crawford
March 15, 2018

The bank has already reported the acquisition to the stock exchanges.

On February 15, the Supreme Court lifted its stay on sale of shares of Fortis Healthcare pledged with banks by the promoters Singh brothers (Malvinder Mohan Singh and Shivinder Mohan Singh) before August 31, allowing financial institutions, including Axis Bank and Yes Bank, to sell the pledged shares. The company has been without a promoter after the Singh brothers' stake in the company has plunged. "In this scenario, it is possible that both TPG-Manipal and IHH may come up with competing open offers", said one of the two people cited above.

A Voluntary Open Offer is an open offer given by the acquirer voluntarily without triggering the mandatory open offer obligations.

Yes Bank is forced to invoke the pledge when the promoter group companies defaulted on the credit facility the bank had extended to them.

Mumbai-based private lender YES Bank is the single largest shareholder with a 17.03% stake in Fortis.

Yes Bank has acquired 17.31 per cent stake in Fortis Healthcare following invocation of almost 9 crore pledged shares last month. The Malaysian firm had earlier pulled out of talks to buy a stake in Fortis, announcing in June that it was not engaged in any negotiations in India at the time. Fortis Healthcare now has a market capitalization of Rs7,908 crore and liabilities of Rs3,406 crore against revenue of Rs4,573 crore in FY17, according to its audited financial results. "We will update the market if there are any material developments".

Other reports by Iphone Fresh

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