Three Fortis directors resign ahead of shareholder vote on bid

MUMBAI: Three directors of India’s Fortis Healthcare have quit ahead of a shareholder vote today to decide their future, the company said, the latest twist in a prolonged takeover battle for the hospitals operator.

Fortis Healthcare organised the vote after two major shareholders – Eastbridge Capital and Jupiter India which together control about 12% of the company – called for the removal of four directors.

Three of those directors – Harpal Singh, Tejinder Singh Shergill and Sabina Vaisoha – resigned on Sunday citing personal reasons, Fortis said in separate statements. A fourth director, Brian Tempest, still faces a vote today.

Fortis Healthcare, which operates about 45 healthcare facilities in India, Dubai, Mauritius and Sri Lanka, has been the target of lengthy takeover tussle involving five suitors.

On May 11, Fortis said it planned to accept an offer from Hero Enterprise Investment Office and Burman Family Office to together invest 18 billion rupees (RM1.1 billion), valuing Fortis at 90 billion rupees.

That decision angered some investors and shares in the cash-strapped hospital operator fell almost 5%.

The keen interest in Fortis has emerged as private healthcare spending in India is on the rise, and Indian Prime Minister Narendra Modi looks to implement a healthcare programme aimed at providing insurance cover to hundreds of millions of people in a country that lacks adequate heath facilities. – Reuters