Fortis Healthcare to seek legal advice following SC order

Hospital chain Fortis Healthcare has said that it would seek legal advice on its future course of action, after the Supreme Court ordered continuation of the stay on the IHH open offer.

“We understand that the proceedings before the Hon’ble Supreme Court have concluded with certain directions and the suo-motu contempt has been disposed-off. We will go by the directions of the Hon’ble Supreme Court and will be seeking legal advice regarding our future course of action,” Fortis said in a statement on Thursday.

The Malaysian healthcare group IHH Healthcare had finally won the bid for Fortis in a long-fought battle.

But with 31 percent stake in the company, its open offer was blocked by Japanese drugmaker Daiichi Sankyo—an offshoot of an ongoing legal battle with erstwhile Ranbaxy promoters, Malvinder and Shivinder Singh. The Singh family were also promoters of the Fortis chain.

The latest legal development at the SC sent the Fortis Healthcare stock price plummeting 18 percent. It has since regained a bit, and stands at ₹260.10 on the BSE, at 12.52 pm, down 16.42 percent.

Media reports said the Court had also called for a forensic audit of the deal, while pronouncing a jail term of six months for the Singh brothers. The case has now been remanded to the Delhi High Court, the report said.

“We remain committed to our core purpose of patient care and will continue to focus on our strategic and operational objectives to further strengthen and expand our healthcare network. We will keep all our stakeholders informed, as required,” Fortis said. The Hindu BusinessLine