New Delhi: Malaysia’s IHH Healthcare Monday said it will not be able to proceed with the open offer for Fortis Healthcare for the time being, following the Supreme Court order to put on hold sale of controlling stake in the Indian hospital chain. In a regulatory filing, IHH Healthcare, however, said the Supreme Court’s order does not impact acquisition of 31.1% stake in Fortis Healthcare for ₹4,000 crore, completed on 13 November.
IHH holds Fortis open offer after SC status quo on deal
The board of directors of IHH wishes to inform that the Supreme Court of India had on 14 December 2018 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 PACs (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 (SEBI),” the company said.
The Fortis open offer for an additional 26% stake was scheduled to commence on 18 December and close on 1 January 2019 entailing a total sum of ₹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 ₹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% of the expanded voting share capital of Fortis.
In July this year, IHH had pipped rival Manipal-TPG combine to clinch a ₹4,000-crore deal to acquire 31.1% stake in Fortis Healthcare.
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”.