Fortis to decide on binding bids tomorrow

Cash-strapped Fortis Healthcare, which is in the process of finding a new investor, on Wednesday said its board will meet on July 13 to decide on its preferred bidder and consider raising funds through issue of securities on a preferential allotment basis.

The company had received binding bids from Malaysia's IHH Healthcare and Manipal-TPG combine on July 3, the last day of submission of fresh round of bids called by a newly constituted board. Munjals-Burmans combine, which had earlier emerged as the preferred suitor for Fortis Healthcare, and Radiant Life Care, however, had backed out.

In a regulatory filing on Wednesday, the company said 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, however, did not disclose details of the quantum of funds to be raised.

For months, the troubled healthcare chain has been trying to find a new investor, and on two separate instances it had accepted offers from Manipal-TPG combine and Munjals-Burmans combine only to scrap it and go in for fresh bidding.

As per the new criteria that was put up by the company's board on May 29 the potential buyer had to make a minimum investment of Rs 1,500 crore into Fortis Healthcare by way of preferential allotment.