IHH Healthcare starts discussions with SEBI over stalled open offer for Fortis Healthcare

Malaysia’s IHH Healthcare has initiated discussions with authorities in India including the stock market regulator to determine the next step for its stalled open offer for an additional 26.1 percent stake in Fortis Healthcare, The Economic Times reported on October 13 citing sources.

The Supreme Court had last month ordered a forensic audit of the share sale of Fortis to IHH Healthcare executed in 2018, in a contempt case filed by Japanese firm Daiichi Sankyo Company against the former promoters of Fortis, Singh brothers — Malvinder and Shivinder — and others.

Currently, IHH is the largest shareholder in Fortis with a 31.1% stake. It has spent and earmarked Rs 7,000 crore for the acquisition, including the amount kept in escrow pending court clearance.

The IHH-Fortis deal is stuck due to the legal battle between Daiichi and the former promoters of Fortis.

Daiichi has been seeking enforcement of a foreign arbitral award ruled in Singapore on 29 April 2016 to the tune of Rs 3,600 crore in its favour.

The former promoters of Fortis have been facing the court battle after Daiichi challenged the Fortis-IHH share deal to recover the arbitration award.

In December 2018, the Supreme Court had ordered status quo with regard to the sale of controlling stakes of Fortis to IHH by former Ranbaxy promoters and hospital operators Malvinder and Shivinder.

The apex court’s order put on hold IHH’s open offer for an additional 26.1 per cent stake in Fortis, which was scheduled to commence on 18 December 18 and close on 1 January 2019 entailing a total sum of Rs 3,300 crore. Moneycontrol