Fortis stake sale bids postponed to June 28

Fortis Healthcare’s proposed stake sale is delayed yet again. The board of Fortis Healthcare has extended the date for submission of binding offers by a fortnight to June 28 as the financial accounts of last year are yet to be finalised.

Fortis has shortlisted four entities — the Munjal-Burman combine, Manipal-TPG consortium, Malaysia's IHH Healthcare Berhad and Radiant Life Care — to bid for the sale of its business. According to the initial plan, the bids were supposed to be submitted on June 14.

The hospital chain’s board was supposed to finalise the fourth quarter and FY18 accounts on Monday but it postponed the result to June 25 for considering the findings of an investigation report into controversial-related party transactions.

In a stock exchange notification, Fortis said that the investigation report was made available to the company last Friday and was placed before the board on Monday.

The report had been shared with statutory auditors and also with Securities and Exchange Board of India and Serious Fraud Investigation Office, the company said.

The board’s audit and risk management committee in February had asked law firm Luthra & Luthra to carry out an independent investigation, following allegations of fund diversion by its erstwhile promoters.

Fortis had then clarified that the company had loaned ~4.73 billion to certain corporate entities last year.

These loans were recognised as related party transactions and repayment had commenced, Fortis had said.