Fortis Healthcare falls 4% as board opts for Munjal-Burman offer

Fortis Healthcare was trading 4% lower at Rs 146 on the BSE, after the company said the board chooses the Hero Enterprises-Burman Family Office offer as the best for the hospital and diagnostic chain.

“The Board, post having detailed discussions on the pros and cons of each offer, decided by majority, to recommend the offer of Hero Enterprise Investment Office-Burman Family Office (the last offer made on May 1, 2018)," Fortis Healthcare said in a statement to the BSE on Wednesday. CLICK HERE TO READ FULL REPORT

Hero Enterprise Investment Office and the Burman Family Office had made a binding offer to invest Rs 8 billion through a preferential share issue at Rs 167 per share and Rs 10 billion via preferential issue of warrants (of which Rs 2.50 billion will be upfront being an amount equivalent to 25% of the consideration of warrants) at Rs 176 per share, the company said.

The recommendation of the board will now be placed before the shareholders for their approval.

Fortis Healthcare had outperformed the market by surging 24% from its recent low of Rs 123 on March 28, 2018, against 7% rise in the S&P BSE Sensex till Thursday. Thus far in the calendar year 2018, the stock was down 5% against 3.5% rise in the benchmark index till yesterday.