Hotline: 1800 102 2007
X
Search Business Opportunities
May, 21 2018

3 Directors' exit may initiate fresh Bidding wars in Fortis

Fortis had called for a meeting of all its shareholders on Tuesday to decide on the directors’ fate.

India’s second largest hospital chain, Fortis Healthcare Ltd has seen the step down of three Directors from the board just ahead of a shareholders’ meeting to decide their fate. The move is expected to restart the hotly-contested bidding process and further delay the sale of India’s second-largest hospital chain.

Independent directors Sabina Vaisoha and Lt. Gen. (retired) Tejinder Singh Shergill and non-executive director Harpal Singh have resigned, citing personal reasons, Fortis said in separate stock-exchange filings.

The resignations come after some institutional shareholders of Fortis demanded that four directors–Brian Tempest is the fourth quit the board. The Jupiter India Fund and East Bridge Capital had said that the directors had failed to work in the interest of the company’s shareholders while deciding the offers for selling the hospital chain.

Fortis had called for a meeting of all its shareholders on Tuesday to decide on the directors’ fate.

All four directors were appointed by Fortis founders, the brothers Malvinder Singh and Shivinder Singh.

Harpal Singh is the father-in-law of Malvinder Singh, while Tempest is a former CEO of Ranbaxy Laboratories Ltd, the drugmaker that the Singh brothers sold to Japan’s Daiichi Sankyo in 2008.

The four directors had earlier sent a note to shareholders dismissing allegations of not satisfactorily exercising their fiduciary duties and failing to maintain the expected levels of corporate governance, and had asked them to take an “informed decision” while voting on their fate.

As calls for the removal of these directors grew, the activist investors had recommended on 26 April that three persons join the board immediately as additional independent directors.

The appointment of the new directors Suvalaxmi Chakraborty, Ravi Rajagopal and Indrajit Banerjee is awaiting shareholders’ approval.

Meanwhile, Fortis’s single-largest shareholder, Yes Bank, has urged the board to consider revised bids for the hospital chain (of Manipal Hospital Enterprises and IHH Healthcare) despite board acceptance of the Munjal-Burman offer, said a report in The Economic Times, citing people in the know. Yes Bank, according to the report, also urged the board to consider inviting those that did not submit or revise their bids.

Comment
Related opportunities
  • Furniture/Home Decor & Furnishing
    About Us: We are the global providers of Onyx quarried from..
    Locations looking for expansion Karnataka
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type MultiUnit
    Headquater Bangalore Karnataka
  • Competitive Exam Coaching Institute
    About Us: Trishul Defence Academy is one of the leading defense..
    Locations looking for expansion Uttar pradesh
    Establishment year 2004
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 2200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Lucknow Uttar pradesh
  • Car wash / Ceramic Coating / Detailing
    About Us: WASH4SURE is Brand Name of Pragun Services Pvt. Ltd. ..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 50 K - 2lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater pune Maharashtra
  • Professional Education Colleges
    About:  Ruskin College of Business studies (RCBS) is one of the..
    Locations looking for expansion Tamil nadu
    Establishment year 2015
    Franchising Launch Date 2017
    Investment size Rs. 20lac - 30lac
    Space required 0
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chennai Tamil nadu
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities