Hero-Burman's accepted bid for Fortis Healthcare a win-win

Fund infusion without any clauses at higher end of all bid valuations is key

With the Hero-Burman consortium chosen as the winner from the five bids for the control of Fortis Healthcare, this is expected to bring to an end uncertainty related to the acquisition. The consortium comprising promoters with proven track record taking over Fortis is looked at in positive light by experts such as G Chokkalingam of Equinomics Research and Advisory. The commitment of upfront equity infusion of Rs 8 billion (fresh equity shares implying valuations at Rs 167 per share) and Rs 10 billion through preferential issue of warrants (at valuations of Rs 176 a share) would mean a total infusion