SC order does not impact 31.1% stake sale to IHH Healthcare: Fortis
Healthcare Saturday said the Supreme Court ordering a status quo on its deal with IHH Healthcare Berhad does not impact the company's 31.1 per cent stake sale to the Malaysian firm.
Healthcare Saturday said the Supreme Court ordering a status quo on its deal with IHH Healthcare Berhad does not impact the company's 31.1 per cent stake sale to the Malaysian firm. However, this order could have a bearing on IHH's proposed open offer to acquire additional 26 per cent stake in Fortis. The open offer is scheduled to be launched from December 18 to January 1, 2019.
On Friday, the Supreme Court had ordered status quo with regard to the sale of controlling stakes of Fortis to IHH Healthcare Berhad by former Ranbaxy promoters and hospital operators -- Malvinder and Shivinder Singh. The apex court was hearing the plea of Japanese firm Daiichi Sankyo which is seeking to recover Rs 3,500 crore, awarded to it by a Singapore tribunal in its case against Malvinder and Shivinder Singh.
"We would also like to emphasise that this order does not impact the preferential allotment that was made to Northern TK Ventures, a wholly owned subsidiary of IHH Healthcare Berhad, by Fortis on November 13, 2018...Consequent to which IHH Healthcare Berhad owns 31.1 per cent equity stake in Fortis," the healthcare major said in a statement.
The company said that it is currently evaluating the order and seeking appropriate legal advice to decide its future course of action. Fortis also clarified that it was not a party to the judicial proceedings in which the SC order has been passed. "As we have reiterated many times earlier, the ex-promoters are no longer a part of Fortis," the statement said.
Fortis said the judicial proceedings on Friday were in matters solely related to Singh brothers, specifically, in connection with alleged transfer of their shares to Indiabulls Housing Finance Ltd. Singh brother had pledged their shares in Fortis to Indiabulls Housing Finance.
Daiichi Sankyo, which has filed the contempt plea against the Singh brothers in the apex court, has said that it was promised some shares of Fortis Healthcare by the Singh brothers. The top court also issued notices to the Singh brothers asking them to explain as to why contempt proceedings be not initiated against them for allegedly violating its earlier order by pledging the shares.
The board of Fortis Healthcare had approved in July a proposal from IHH Healthcare to invest Rs 4,000 crore by way of preferential allotment for a 31.1 per cent stake.