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Care Hospitals buyout: Max Healthcare sues TPG citing breach of term sheet pact

Economic Times  

The takeover battle for Care Hospitals has landed up in the Bombay High Court with Max Healthcare Institute filing a suit against TPG after the private equity firm firm, which is the majority stakeholder in Care, spurned Max's bid in favor of a higher offer by fellow private equity firm Blackstone. Max Healthcare is citing a breach of their term sheet agreement over a “specific performance” clause. Under this, TPG should specify why it is not honoring an agreement. Reports indicate that Max is alleging that its offer was "shopped around to Blackstone despite a non-disclosure and exclusive agreement". The Max offer was said to be valued at INR 3,700 crore and had the option to buy Care's Bangladesh assets after running them for 2 years. Hearings on the case are set to begin May 3.