For­tis CEO quits ahead of board makeover

Mint ST - - FRONT PAGE - Teena.t@livemint.com NEW DELHI

For­tis board ex­pected to meet next week to ap­point IHH’S rep­re­sen­ta­tives

With Malaysia’s IHH Health­care Bhd set to take con­trol of For­tis Health­care Ltd, Bhavdeep Singh, chief ex­ec­u­tive of the trou­bled hos­pi­tal op­er­a­tor, re­signed on Thurs­day, cit­ing per­sonal rea­sons.

The For­tis board is ex­pected to meet next week to ap­point rep­re­sen­ta­tives from IHH on the board, two peo­ple aware of the mat­ter said.

Singh’s res­ig­na­tion clears the way for IHH to bring in its own can­di­date to run For­tis Health­care once the Malaysian group for­mally takes con­trol.

Fol­low­ing ap­proval from the In­dian an­titrust reg­u­la­tor on 30 Oc­to­ber, IHH will now buy a con­trol­ling stake in In­dia’s sec­ond-largest hos­pi­tal chain by in­fus­ing around ₹4,000 crore. It will sub­se­quently of­fer to buy an ad­di­tional 26% from pub­lic share­hold­ers through an open of­fer.

“The pref­er­en­tial al­lot­ment of shares will be con­firmed in the up­com­ing meet­ing,” one of the two peo­ple cited above said, re­quest­ing anonymity.

The meet­ing will also see the board mak­ing de­ci­sions on liq­uid­ity re­quire­ments of the com­pany, in­clud­ing is­sues such as dis­pens­ing salaries and pay­ments to ven­dors, main­te­nance of equip­ment and in­fra­struc­ture up­grades. IHH will have the right to nom­i­nate di­rec­tors con­sti­tut­ing twothirds of the board af­ter the in­fu­sion of funds into For­tis.

“They will have to broaden the board, tak­ing more mem­bers of the new pro­mot­ers,”

On 29 May, the new board ini­ti­ated a fresh bid­ding process. IHH, Tpg-ma­ni­pal and Mun­jal-bur­man con­sor­tium were to par­tic­i­pate. Ra­di­ant-kkr sent an ex­pres­sion of in­ter­est, but later dropped out said Shri­ram Subra­ma­nian, founder and man­ag­ing di­rec­tor of proxy firm In­govern Re­search.

In July, the For­tis board unan­i­mously ac­cepted the bind­ing of­fer from IHH Health­care, bring­ing the cur­tains down on a bid­ding war for the be­lea­guered hos­pi­tal op­er­a­tor. The board of For­tis Health­care ap­proved a bind­ing in­vest­ment pro­posal from IHH to in­vest ₹4,000 crore by

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