Supreme Court asks Singh brothers to maintain status quo on Fortis Healthcare stake
New Delhi: The Supreme Court on Friday directed former Ranbaxy promoters, Malvinder and Shivender Singh, to maintain status quo with regard to their stake in Fortis Healthcare Ltd.
A bench headed by justice Ranjan Gogoi also issued a notice to the Singh brothers and others seeking their response before the next date of hearing.
Daiichi had challenged a 21 June order of the Delhi high court allowing the Singh brothers to potentially sell a stake in Fortis Healthcare on the condition that the disclosed value of their unencumbered assets would remain unaffected.
The order was passed to afford protection to Japanese drugmaker Daiichi Sankyo Ltd in terms of ready realizable value of assets at a later stage. As a result, the value of stake in the holding companies, namely RHC Holding Pvt. Ltd and Oscar Investments Ltd, would not change.
The value of unencumbered assets held by the Singh brothers in both these companies amounts roughly to the arbitration award of Rs2,500 crore handed down by a Singapore tribunal in 2016 in favour of Daiichi in relation to its 2008 purchase of a majority stake in Ranbaxy.
RHC Holdings has an 80.67% in Fortis Healthcare Holding Pvt. Ltd, while Oscar Investment holds the remaining 19.33%. Fortis Healthcare Holdings in turn has a 52.5% stake in Fortis Healthcare.
The arbitral award came after Daiichi alleged that the Singh brothers had concealed crucial information while selling Ranbaxy to it for $4.6 billion in 2008. The Singh brothers are contesting the award.
Sun Pharmaceutical Industries Ltd purchased Ranbaxy from Daiichi in a $3.2 billion acquisition it completed in 2015.