Two more Fortis Healthcare independent directors quit ahead of EGM

Two more independent directors of the Fortis Healthcare board -- Sabina Vaisoha and Harpal Singh -- have resigned ahead of an extraordinary general body meeting on Tuesday.

Tejinder Gill, another independent director, stepped down on Sunday, two days before a shareholders' meeting to decide the fate of four directors.

Two large institutional shareholders -- Eastbridge Capital and Jupiter India Fund have called for the meeting to remove four existing directors and appoint three new ones.

Three of the four directors who were sought to be replaced have stepped down, while Brian Tempest still remains on the board.

A few investors are said to have backed the Eastbridge Capital proposal. According to a media report, the largest shareholder in Fortis Healthcare, YES Bank, has written to the company urging it to consider all the revised bids.

Yes Bank's stance with regard to the EGM is not clear, however, its action clearly puts pressure on the four independent directors who had backed Munjal-Burman offer for the hospital chain.

Last week, Manipal Hospitals-TPG submitted a revised bid for Fortis, sweetening its earlier offer by 12.5 per cent. The offer was made three days after Fortis board chose the Munjal-Burman offer.

Manipal Hospital's new offer at Rs 180 per share values Fortis Healthcare at Rs 94.03 billion. This is the highest offer made till date.