IHH’s NTK ups damages claim against Daiichi Sankyo to Rs 11,800 crore in Fortis deal dispute

IHH Healthcare

Northern TK Venture Pte Ltd. (NTK), a Singapore-based indirect subsidiary of IHH Healthcare Berhad, has sharply escalated its legal claim against Japan’s Daiichi Sankyo Co. Ltd., seeking damages of ¥200 billion—equivalent to approximately Rs 11,800 crore —in a long-running dispute over the stalled acquisition of Indian hospital chain Fortis Healthcare.

The revised claim, filed with the Tokyo District Court, is ten times the original amount of ¥20 billion (Rs 1,144 crore). The revised claim stems from NTK’s allegations that Daiichi Sankyo obstructed its 2018 open offer to acquire shares in India’s Fortis Healthcare and its subsidiary Fortis Malar Hospitals. NTK contends that Daiichi Sankyo’s actions derailed the acquisition process, causing significant financial and reputational losses.

The new damages figure is based on an expert report by Osborne Partners, which modeled three counterfactual scenarios assuming the open offer had proceeded without interference. The report estimates NTK’s losses could range from Rs 424 crore to Rs 10,930 crore (up to ¥199.8 billion), excluding interest.

NTK, incorporated in Singapore, acquired a 31.1% stake in Fortis Healthcare in 2018 after winning a competitive bid. Under Indian law, this triggered a mandatory open offer to Fortis Healthcare’s public shareholders. However, Daiichi Sankyo obtained an ex parte interim status quo order from India’s Supreme Court, effectively freezing the offer.

Daiichi Sankyo has been engaged in separate legal proceedings in India against the Singh brothers, former promoters of Ranbaxy Laboratories, over a long-standing arbitration award. NTK and IHH maintain they have no connection to the Singh brothers and argue that Daiichi Sankyo’s actions were unjustified and damaging.

Although the Indian Supreme Court lifted the interim order in 2022, NTK alleges that Daiichi Sankyo continued to obstruct the process by threatening regulatory action, preventing the open offer from proceeding.

NTK claims it has suffered losses from frozen deposits, missed dividends, and appreciation in Fortis Healthcare’s share price. The company also cites reputational harm and defamation as part of its revised claim.

IHH, one of the world’s largest hospital groups, has invested heavily in India’s healthcare sector. Through NTK and Fortis, it operates a network of 28 hospitals and over 400 diagnostic labs. The group views India as a core market alongside Malaysia, Singapore, and Türkiye.

The Tokyo District Court has scheduled the next closed-door hearing for July 11, 2025. NTK has reserved the right to further amend its claim, citing ongoing damages.