Supreme Court Tells Singh Brothers Not To Dilute Stake In Fortis Healthcare
A two-judge bench said it will hear Daiichi’s plea in four weeks.
The Supreme Court on Friday issued a notice to brothers Malvinder Singh and Shivinder Singh to stop further stake sale in Fortis Healthcare until it hears a plea by Japanese drugmaker Daiichi Sankyo.
A two-judge bench headed by Justice Ranjan Gogoi said it will hear Daiichi’s plea, which was filed on Thursday to block any dilution of stake by the promoter duo, in four weeks. The dispute stems from the U.S. drug regulator’s action against Ranbaxy after Daiichi acquired it from the Singh brothers.
Daiichi’s counsel, Senior Advocate Arvind Datar, informed the court that Singh brothers have reduced shareholding in Fortis Healthcare to 37 percent from 52 percent.
The Japanese drugmaker had moved the top court against a June order of the Delhi High Court, which allowed the brothers to issue fresh equity in Fortis Healthcare Ltd. to dilute their stakes in two holding companies – RHC Holdings and Oscar Investments Ltd. The high court, however, directed them to ensure the value of their shares in the two companies doesn’t fall.
Daiichi had approached the court to secure assets of the Fortis Healthcare promoters to realise the Rs 2,560-crore arbitration award it won in Singapore last year over its Ranbaxy deal. The Japanese drugmaker had initiated arbitration alleging the brothers concealed facts about the U.S. drug regulator’s action while selling Ranbaxy.