The Munjal de Hero, the Burmans of Dabur come out of the race for Fortis

NEW DELHI: The grouping of Sunil Kant Munjal from Hero Enterprises and the Burman family of the Dabur group seems to have pulled out of the race to take a stake in Fortis Healthcare, according to people directly familiar with the development.

This should leave preselected IHH Healthcare Bhd bidders, Manipal Health Enterprises supported by TPG Asia and Radiant Life Care supported by KKR still at the palisade for India's second largest hospital chain.

While development is a surprise, people familiar with the development told ET that the Munjal-Burman consortium had become lukewarm in terms of interacting with advisors and council over the past 10 days.

The reaper could not be reached for comment.
[IHM]

IHH told the Malaysian Stock Exchange on Tuesday that it had submitted a firm offer to Fortis, valid until 5 pm on July 16.

Manipal-TPG also submitted a firm offer in a sealed envelope that is expected to be opened by the board along with other offers later this week, a person close to development told ET under cover of anonymity.

It is not clear whether these competitors have revised their previous offers for the health care company and it is also to be confirmed whether Radiant-KKR has submitted a firm offer.

The Fortis Board of Directors was reconstituted at the end of May after a group of minority shareholders opposed the way the appeal process was conducted. Offers was conducted.

Following this, the new Fortis Board of Directors launched a new tendering process for an agreement after the Munjal-Burman consortium, whose candidacy had been retained on May 10, agreed.

The combination Munjal-Burman, IHH, Manipal-TPG and Radiant-KKR were earlier in the fray for Fortis and had submitted various competing offers and financial structures between April and May.

The last offer of the Munjal-Burman combine was to invest Rs 1,800 crore in advance thanks to a preferential allocation of shares (Rs 167 per share) and warrants (Rs 176 per share ).

Manipal-TPG had previously proposed to inject 2,100 crores of rupees through a preferential allocation to Rs 180 per share, which would enable it to recover 18.4% of the capital of Fortis at the valuation of Rs 9 403 crore. He planned to buy the SRL PE investors for Rs.1,113.4 million and, in the third step, suggested merging Manipal Health Enterprises with Fortis Healthcare after the restructuring of the SRL board of directors.

IHH had planned to invest up to 7,400 rupees for a stake of more than 50% in Fortis at Rs 175 per share, while Radiant-KKR was proposing to buy l & rsquo; Fortis Mulund Hospital for a business value of Rs 1,200 crore. provide immediate liquidity of Rs 680 crore to Fortis Healthcare.

As part of its non-binding offer, Radiant-KKR also proposed to withdraw SRL so that Fortis could conduct an independent competitive sales process. He also proposed a split of hospital business into a new company excluding Fortis Healthcare's stake in SRL and announced the launch of an open offer to shareholders of this new company at Rs 126 per share, provided that Radiant-KKR has acquired 26% or more stake through an open offer or a preferential allotment.