File photo of Fortis Hospital. (PTI)

Supreme Court Puts Fortis Healthcare Sale To IHH On Hold

The Supreme Court today ordered a status quo on the Rs 4,000 crore sale of Fortis Healthcare Ltd. to Malaysian group IHH Healthcare Bhd.

A three-judge bench headed by Justice Ranjan Gogoi was hearing the petition filed by Japanese drugmaker Daiichi Sankyo alleging former promoters—brothers Malvinder and Shivinder Singh—violated undertakings and court orders.

Daiichi had sought a stay on the Fortis sale as the Singh brothers had not fulfilled their commitment to pay the drugmaker as per the Delhi High Court’s orders, one of Daiichi’s lawyers told BloombergQuint on the condition of anonymity.

Daiichi’s lawyers argued in court that the Singh brothers created encumbrances on their shares even after the court order.

Also read: Daiichi Wins $550 Million Award Enforcement Case in India

The petition came up for hearing first time today. The court issued notices to Fortis, Indiabulls Housing Finance Ltd, Singh brothers, and their holding companies on the Daiichi plea.

Shares of Fortis Healthcare slumped as much as 7.6 percent to Rs 140 apiece after the court pronounced its order. On July 13, the board of Fortis had approved the offer of IHH Healthcare for an equity infusion of Rs 4,000 crore at a price of Rs 170 per share.

Also read: Cash-Strapped Fortis Healthcare Picks IHH as Its New Owner