Fortis extends deadline for submission of binding bids to June 28

New Delhi: Cash-strapped Fortis Healthcare, which is in the process of finding a buyer, has extended the deadline for submission of binding bids to June 28.

Earlier this month, Fortis Healthcare had shortlisted four entities -- the Munjal-Burman combine, Manipal-TPG consortium, Malaysia's IHH Healthcare Berhad and Radiant Life Care to bid for the sale of its business.

Last month, Fortis Healthcare had initiated a fresh time-bound bidding process for its sale after terminating the offer made by the Munjal-Burman combine. The earlier deadline for submitting fresh binding bids was June 14.

"The date for submission of the binding bids...stands revised to Thursday, June 28, 2018," Fortis Healthcare said in a regulatory filing.

As per the criteria set by the company, the buyers have to make a minimum investment of Rs 1,500 crore into Fortis Healthcare by way of preferential allotment apart from having a plan for funding the acquisition of RHT Health Trust (RHT) and a plan for providing exit to private equity investors of diagnostic arm SRL.

Among others, the bids should be unconditional as well as mention the source of funds for the transaction and elaborate on the plans for retention of current management and employees.

On Monday, Fortis Healthcare had again deferred approval of quarterly and annual financial results for the period ended March 31, 2018, saying more time is needed to consider the aspects of outcome of an internal investigation into alleged financial irregularities.

The date for the approval of the said accounts will be June 25, 2018, it added.

On May 30, the company had postponed its board meeting scheduled to consider financial results for the fourth quarter and financial year ended March 31, 2018, to June 11.

It had cited deliberations on the conclusions of the internal investigation on the alleged financial irregularities in the company as reason for the deferment.