Fortis Healthcare tanks after Supreme Court order

22 Sep 2022 , 02:49 PM

SC on Thursday (22 September) refused to lift the block on completion of the takeover of hospital chain Fortis Healthcare by Malaysian operator IHH Healthcare Bhd. …Proceedings before the Supreme Court have concluded with certain directions and the suo-motu contempt has been disposed-off. We are seeking legal advice to decide our future course of action, Fortis said in a statement to exchanges on Thursday. 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, it added. Malaysian major IHH Healthcare acquired a 31% stake in Fortis Healthcare in 2018 for $1.1 billion through a bidding process. The acquisition triggered a mandatory open offer for IHH to acquire another 26% stake in Fortis. IHHs attempt to become Fortis controlling shareholder was halted in 2018, when Japanese drugmaker Daiichi Sankyo Co. contested the deal as part of its efforts to recover $500 million from the Singh brothers. Daiichi had moved SC to launch contempt proceedings against Malvinder Singh and his brother Shivinder Singh for non-payment of $500 million arbitral award. The Singh duo sold Ranbaxy to Daiichi in 2008. However, Daiichi accused the Singh brothers of concealing information during the sale of Ranbaxy, and dragged them to an international court. The brothers ultimately lost the case and were ordered by a Singapore tribunal to pay $500 million to Daiichi in 2016. In March 2019, Daiichi had filed a contempt plea against the Singh brothers and Indiabulls alleging that the two had pledged 1.7 million shares of Fortis Healthcare held by Fortis Healthcare Holding, despite the apex court forbidding it. SC on Thursday sentenced Malvinder Singh and Shivinder Singh to six months in jail for contempt of court. Fortis Healthcare is a leading integrated healthcare delivery service provider in India. On a consolidated basis, Fortis Healthcare reported 53.6 % fall in net profit to Rs 122.2 crore on 5.5% rise in revenue from operations to Rs 1,487.9 crore in Q1 FY23 over Q1 FY22. Powered by Capital Market – Live News