Fortis Healthcare Ltd’s shareholders have voted in favor of the decision to remove the director Brian Tempest from the board. Tempest was last of the four directors who voted for in favor of the offer by Sunil Munjal’s Hero Enterprises Investment Office and the Burman family office to buy stakes in Fortis Healthcare. The other three directors resigned before the shareholders voted.
The company plans to appoint three new board members to revisit the bidding process.
According to the media reports, about 58 percent of the total shareholders supported the resolution to remove Tempest. Additionally, more than 65 percent voted in favor of the recommendation to appoint Suvalaxmi Chakraborty, Ravi Rajagopal, and Indrajit Banerjee as independent directors.
According to the reports, two institutional investors, East Bridge Capital Fund and Jupiter India Fund that own 12.04 percent in the company had summoned the general meeting to vote on seven resolutions, including the discharge of Tempest and appointing the three new directors. The movement followed the board's decision to enter into a binding agreement with a consortium of Manipal's Health Enterprises and TPG Asia, a deal that reportedly upset several shareholders, including East Bridge, because of the valuation for Fortis' hospital business in that deal. The board then recommended another offer by a consortium of Sunil Kant Munjal of Hero Enterprises and the Burman family of the Dabur group.
Tempest was earlier quoted in media saying liquidity and certainty were reasons for the board’s decision.
Picture Credits: Fortis Memorial Research Intitute