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Last Updated : Dec 17, 2018 01:43 PM IST | Source: Moneycontrol.com

IHH puts Fortis open offer on hold, says seeking legal advice on SC's order

The proposed open offer is scheduled to be launched from December 18 to January 1, 2019.

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IHH Healthcare on Monday said it has put its scheduled open offer to acquire additionally 26 percent of Fortis Healthcare on hold until further clarification by the Supreme Court and the Securities and Exchange Board of India (SEBI).

The proposed open offer was scheduled to be launched from December 18 to January 1, 2019.

The Supreme Court on December 14 passed an order directing status quo with regard to sale of the controlling stake in Fortis Healthcare to Malaysian IHH Healthcare.


The court was hearing a petition filed by Japanese drugmaker Daiichi Sankyo, which is seeking to recover Rs 3,500 crore, awarded to it by a Singapore tribunal in an arbitration case against Malvinder and Shivinder Singh.

IHH also said its wholly-owned subsidiary Northern TK Venture (NTK) through which it acquired Fortis, was not a party to the proceedings before the Supreme Court, and that the order does not impact the subscription which was completed on November 13.

IHH has infused Rs 4,000 crore of primary capital into the company through a preferential issue via NTK.

NTK has become the controlling shareholder in the company with 31.1 percent stake of the expanded capital. The remaining 26 percent stake was scheduled to be acquired through an open offer at Rs 170 per share, valuing Fortis at Rs 7,300 crore.

"IHH, PPL and NTK are in the process of evaluating the Order and seeking appropriate legal advice on this matter and will subsequently decide on the future course of action," IHH said in a statement.

Fortis said the judicial proceedings on Friday were in matters solely related to Singh brothers, specifically, in connection with the alleged transfer of their shares to Indiabulls Housing Finance.

Singh brothers had pledged their shares in Fortis to Indiabulls Housing Finance.

Daiichi Sankyo, which filed the contempt plea against the Singh brothers in the Supreme Court, had said that it was promised some shares of Fortis Healthcare by the Singh brothers.

Shares of Fortis dropped 3.21 percent and were trading at Rs 137.10 on BSE at 12.30 pm, while the benchmark Sensex declined 0.64 percent to 36,199.66 points.
First Published on Dec 17, 2018 01:43 pm