IHH unable to proceed with Fortis open offer after SC status quo on deal

In a regulatory filing, IHH Healthcare, however, said the apex court’s order does not impact acquisition of 31.1 per cent stake in Fortis for RS 4,000 crore, which was completed on November 13.

The Board of Directors of IHH wishes to inform that the Supreme Court of India had on December 14, 2018, passed an order directing “status quo with regard to the 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 open offer for an additional 26 per cent stake was scheduled to commence on December 18 and close on January 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 per cent 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 per cent 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”.