Fortis stake sale: Three directors quit ahead of shareholder vote today citing personal reasons
The directors quitting is the latest twist in a prolonged takeover for Fortis, one of the country’s largest hospital operators.
Mumbai/London: Three directors of India’s Fortis Healthcare have quit ahead of a shareholder vote on Tuesday to decide their future, the company said, the latest twist in a prolonged takeover for one of the country’s largest hospital operators.
Harpal Singh, Tejinder Singh Shergill and Sabina Vaisoha cited personal reasons for their resignations, coming days after two major Fortis shareholders said the directors had not met their fiduciary duties.
Their departures raised fresh questions about the direction cash-strapped Fortis will take as it considers bids from five parties who have proposed to buy whole or part of the company.
Fortis has received more than a dozen competing offers since it first agreed in March to a proposal from a consortium led by rival Manipal Hospitals Enterprises.
Fortis then said in May it planned to accept an offer from Hero Enterprise Investment Office and Burman Family Office that valued the company at 90 billion rupees. Shareholders responded by pushing the company’s shares down 5 percent.
Eastbridge Capital and Jupiter India — two large investors who together control about 12 percent of the company — had called for Tuesday’s vote.
They said the directors had not satisfactorily exercised “their respective fiduciary duties towards shareholders and have failed to maintain expected levels of corporate governance,” according to a filing made by Fortis last week.
A fourth director, Brian Tempest, still faces a vote at Tuesday’s meeting.
Indian proxy advisory firms have previously questioned the independence of the Fortis board.
Fortis stake sale: Munjals, Burmans extend validity of 'improved binding offer' to 4 May amid five-way tussle
Fortis Healthcare said Hero Enterprise Investment Office and Burman Family Office have extended validity of their 'improved binding offer' till 4 May, 2018
Fortis Healthcare stake sale: Munjal-Burmans bat for level playing field; bids to be reviewed on 10 May
Fortis Healthcare committee will evaluate all binding bids received from any party except Manipal and TPG consortium till 12 noon on 1 May.
Last evening, Fortis Healthcare had announced that its board had picked the offer from Munjals-Burmans combine over four other suitors who made binding offers