Unable To Proceed With Fortis Open Offer For Now, IHH Healthcare Says
Malaysia's IHH Healthcare on Monday said that it will not be able to proceed with the open offer for Fortis Healthcare for the time being. This follows the Supreme Court’s order to put on hold the sale of controlling stake in the Indian hospital chain.
IHH Healthcare, however, said the apex court's order does not impact acquisition of 31.1 percent stake in Fortis for Rs 4,000 crore, which was completed on Nov. 3.
“The board of directors of IHH wish to inform that the Supreme Court of India had on Dec.14 passed an order directing status quo with regard to sale of the controlling stake in Fortis Healthcare to Malaysian IHH Healthcare Berhad be maintained,” it said in the filing.
In light of the order, NTK and the persons acting in concert will not be able to proceed with the Fortis open offer for the time being until further order(s)/ clarification(s)/ direction(s) are issued by the Supreme Court of India and/or the Securities and Exchange Board of India.IHH Healthcare
The open offer for an additional 26 percent stake was scheduled to commence on Dec. 18 and close on Jan. 1, 2019, entailing a total sum of Rs 3,300 crore.
Last week, the apex court had ordered status quo with regard to the sale of controlling stakes of Fortis Healthcare while hearing a 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 the erstwhile promoters of the healthcare chain, Malvinder Singh and Shivinder Singh.
IHH further said the court order does not impact the subscription of Fortis shares resulting in IHH through NTK, owning 31.1 percent of the expanded voting share capital of Fortis.
In July this year, IHH had pipped rival Manipal-TPG combine to clinch a Rs 4,000-crore deal to acquire 31.1 percent stake in Fortis.
On the way forward, IHH said it is in the process of evaluating the Supreme Court order and “seeking appropriate legal advice on this matter and will subsequently decide on the future course of action.”