Tension between Japanese drugmaker Daiichi Sankyo and Singh brothers of Fortis Healthcare is rising as the former has again moved the Delhi High Court against Fortis. The court will hear the matter on March 6.
CNBC-TV18 reports that Daiichi has again raised the issue of dilution of assets by Fortis Healthcare. This was the primary reason for Daiichi to move the Delhi HC. Daiichi is seeking protection from asset dilution by the Singh Brothers to ensure that their claim for damages under the arbitration case of over Rs 25 crore is secured.
In today’s development, Daiichi has made fresh application to the court where they have again argued that there has been a further case of dilution. However, the company was unable to reveal the nature of the deal.
In the recent appeal, Daiichi has sought further protection from Delhi HC and also explicit orders to bar the Singh brothers from any form of dilution of assets and the court has agreed to hear this application.
Another important aspect of this case is that the Singh brothers have conceded before the court that they are in talks to raise fresh capital. But, they have also submitted to Delhi HC that even if a deal is finalised it will not be given effect to without taking the consent of the court.
This means that Singh brothers have the liberty to undertake negotiations but for a deal to go through, it will require approval of the court.
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