Fortis, SRL Demerger: National Company Law Tribunal to take call on July 7
NEW DELHI:On the issue of demerger of Fortis and SRL Diagnostics, the National Company Law Tribunal (NCLT) in Chandigarh is soon expected to come with its decision. In an earlier hearing, the NCLT postponed the decision on demerger of SRL Diagnostics from parent company Fortis Healthcare, said the people aware of the development.
Meanwhile, the NCLT has to decide whether the Daiichi Sankyo has right to intervene in the said issue or not, as the final hearing on the demerger plan was stalled last time following a move by Daiichi to block the process, citing ongoing litigation against the Fortis promoters in the Delhi High Court.
The Singh brothers (Malvinder Singh and Shivinder Singh) have been working on to separate the diagnostics firm , SRL from Fortis Healthcare in healthcare to reduce the burden of debts incurred in earlier year.
Medical Dialogues team had earlier reported that the Board of Directors of Fortis Healthcare Limited (“Fortis Healthcare”/ “Company”) had approved a proposal to demerge its diagnostics business, including that housed in its majority owned subsidiary SRL Limited (“SRL”) into another majority owned subsidiary, Fortis Malar Hospitals Limited (“Fortis Malar”) pursuant to a composite scheme of arrangement and amalgamation.
Japanese firm Daiichi Sankyo had approached the Delhi High Court over the sale of stake in Fortis and other firms. In its application, Daiichi has objected to the sale, as it feared that the move will lead to dilution in the assets which it seeks to recover as part of enforcement of the arbitration award.
Last year the Singapore tribunal court directed the former Ranbaxy owners to award Rs. 2,562.78 crore to Japan’s Daiichi Sankyo Co. Ltd for concealing information regarding wrongdoing at Ranbaxy while selling it to Daiichi Sankyo, after that the Ex Ranbaxy owners appealed this award in both the Delhi High Court as well as in Singapore.
“NCLT did not pass any orders, but has postponed the final hearing on the demerger until it decides whether to issue notice on Daiichi’s application,” a lawyer told ET on condition of anonymity.
“The NCLT has adjourned the matter to July 7. We cannot comment further as the matter is sub-judice,” said a spokesperson for RHC Holdings Pvt., the holding company for the Singhs. "Daiichi will take all measures and legal steps to protect its interest and prevent violation of the orders passed in its favor by Delhi High Court," said P&A Law Offices, which represents Daiichi.
The Delhi High Court has recently gave the brothers the green light to enter into corporate transactions provided they maintained the value of the unpledged assets they disclosed to court.
Read also: Fortis Stake Sale: Singh Brothers eye Rs 250 per share