India’s Supreme Court vindicates investment into Fortis, IHH committed to business there
KUALA LUMPUR: IHH Healthcare Bhd said India’s Supreme Court has not found nor indicated any wrongdoing by the group in terms of its investment into Fortis Healthcare Ltd (Fortis) and that the judgment supports IHH’s belief that its investment into Fortis was undertaken in “a fair and transparent manner”.
Hence, the healthcare group “remains committed to executing its business plans” to grow its operations in India following this latest judgment on the Fortis case, the healthcare group said in a filing with Bursa Malaysia.
It also added that it is “aware” of the “keen interest” generated by this latest judgment on various legal proceedings undertaken by Japanese drug maker Daiichi Sankyo Co Ltd in relation to certain other parties, into which Fortis has been drawn.
However, it will continue to serve the healthcare needs of its patients in India while protecting the interests of stakeholders.
India’s top court had on Sept 22 reportedly ordered a forensic audit of a deal between Fortis and RHT Health Trust, and refused to lift the suspension imposed against IHH to proceed in acquiring another 26 per cent stake for up to INR33.5 billion (RM2 billion) in Fortis.
The court sought a probe into the sale of shares in Fortis by lenders and the transfer of money to RHT, on a petition filed by Japanese drug maker Daiichi Sankyo Co.
IHH said in the filing that it remains as Fortis’ largest shareholder with a 31.1 per cent stake, and the judgment “does not in any way alter its commitment” to grow its healthcare operations in India across all 82 hospitals in 10 markets.
The filing also clarified that three petitions were also disposed of with a direction to the High Court to consider issuing appropriate process and appointing forensic auditors to analyse the Fortis-RHT transactions, and other related transactions.
IHH Healthcare had, in 2018, acquired a 31 per cent equity interest in Fortis following a bidding war against local and foreign companies. This triggered a mandatory offer to increase its control to 57 per cent by buying shares from the open market.
This did not take place due to legal proceedings pending in India’s Supreme Court.
IHH added over the last quarter and throughout the pandemic, Fortis has anchored its claim as one of the leading healthcare platforms in India and IHH is committed to stand firm on Fortis’ side to continue this growth journey.