After a long bidding war, a binding offer by IHH Healthcare to invest  ₹4,000 crore in Fortis Healthcare was unanimously accepted in July. (Pradeep Gaur/Mint)
After a long bidding war, a binding offer by IHH Healthcare to invest 4,000 crore in Fortis Healthcare was unanimously accepted in July. (Pradeep Gaur/Mint)

SC seeks Fortis response over transferring 4,000 crore to RHT Health

  • Daiichi Sankyo has filed a plea seeking to restrain Fortis from transferring 4,000 crore to RHT Health Trust
  • SC also issued notice on Fortis plea seeking modification of the ‘status quo’ order on sale of FHL to IHH Healthcare 

NEW DELHI : The Supreme Court on Monday sought a response from Fortis Healthcare Ltd (FHL) on a plea by Japanese firm Daiichi Sankyo seeking to restrain it from transferring 4,000 crore it has received from Malaysia’s IHH Healthcare Berhad to RHT Health Trust, Singapore.

A bench headed by Chief Justice Ranjan Gogoi also issued notice on another application by FHL seeking modification of the order of 14 December that had put on hold one of India’s biggest healthcare deals, ordering a “status quo" on the sale of FHL to IHH Healthcare Berhad. The matter will be heard once replies on the cross applications are filed by the respective parties.

FHL claimed that it was prejudiced by the 14 December order as it was passed without it being a party to the contempt petition.

On 14 December, the top court ordered status quo with regard to sale of the controlling stake in FHL to Malaysian IHH Healthcare Berhad, putting a cloud of uncertainty over the Fortis open offer that was to commence on 18 December and close on 1 January 2019.

The order was passed on a petition by Daiichi Sankyo, which has accused former promoters—Malvinder Singh and Shivinder Singh—of violating court orders. Daiichi had moved a plea against the Singh brothers and Indiabulls alleging they had created fresh encumbrances for around 1.7 million of the total 2.3 million of Fortis shares despite the apex court forbidding it.

After a long bidding war, a binding offer by IHH Healthcare Berhad to invest 4,000 crore in the cash-strapped hospital chain, outbidding a consortium of Manipal Health Enterprises and TPG Capital, was unanimously accepted in July.

The matter will be heard next on 6 February.

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