Fortis Healthcare stock trading lower after board accepts Munjal-Burman offer

The Fortis Healthcare stock was trading lower on BSE after the company's board recommended the binding offer of Hero Enterprise Investment Office-Burman Family Office made on May 1 for the sale of its business. At 13:07 pm, the stock was trading 3.90% lower at 146.50 on BSE. The Fortis Healthcare stock opened with a gain of 2.92% at 156.90 and hit an intra day high of 157 on BSE.

The stock is down 7.52% since the beginning of this year and is trading 27.86% lower on an yearly basis.

The stock hit its 52-week high of 211.50 on May 11, 2017.  It touched its yearly low of 106.20 on February 6, 2018.

In a meeting held on Thursday, the Fortis Board decided by majority to recommend the revised offer of Hero Enterprise Investment Office-Burman Family Office made on May 1 for an upfront equity infusion of Rs 800 crore at a price of Rs 167 per share through preferential allotment, Fortis Healthcare said.

The Munjal-Burmans further agreed to invest another Rs 1,000 crore via preferential issue of warrants priced at Rs 176 per share, it added.

Of this Rs 250 crore will be upfront, being an amount equivalent to 25 per cent of the consideration of warrants at a price of Rs 176 per share, Fortis Healthcare Ltd said.

Fortis Healthcare had received binding offers from four entities - KKR-backed Radiant Life Care, IHH Healthcare, Manipal/TPG consortium, and Munjal and Burman family offices.

On May 6, Manipal Health Enterprises had revised its offer for Fortis Healthcare Ltd (FHL) again, raising the value to Rs 8,358 crore. Earlier on April 24, MHEPL and TPB combine had revised their offer for Fortis raising the value to Rs 6,322 crore. The earlier revised offer of April 10 valued Fortis hospital business at Rs 6,061 crore.