New Delhi, December 15: IHH Healthcare Berhad, a Malaysian-Singaporean private healthcare group, which had earlier this year won the bidding war for India’s second-largest hospital chain, fortis, will have to wait now. A three-judge bench headed by Justice Ranjan Gogoi maintained a Status Quo on the sale of Fortis Healthcare to IHH Healthcare.
This came after a contempt plea was filed by Daiichi Sankyo against Fortis’ former promoters.
Earlier this year this year, IHH was shortlisted to take control of Fortis. A bidding war kicked off after its founders, brothers Malvinder and Shivinder Singh, lost their shareholding due to debt, and allegations that they had improperly taken funds from the company. Soon after IHH won the bidding war, Daiichi-Sankyo of Japan approached the Delhi High Court to block the sale and enforced an arbitration award against the Singh brothers.
The Japanese Company alleged that the brothers concealed information of their generic drug firm, Ranbaxy laboratory while selling its shares to Daiichi back in 2008. In January this year, the Delhi High Court ruled that the Singh brothers must pay Daiichi $550 million awarded in an arbitration. As the case proceeded, it sought an injunction preventing the Singh brothers from selling assets to ensure the brothers have the funds to fulfill their potential liability, as reported by the BloombergQuint.
WHAT DID THE PETITION SAY?
According to a report by the Business Standard, Japanese drugmaker Daiichi-Sankyo had moved a contempt plea against Malvinder and Shivinder Singh (Singh brothers) and Indiabulls, alleging that the two had pledged 1.7 million shares of Fortis Healthcare held by Fortis Healthcare despite the Supreme Courts order of February 15, in which it forbade any fresh encumbrances unless it decides on Daiichi’s petition.
Daiichi alleged that the Singhs and their holding company, RHC, were in violation of their undertakings to the court that they had sufficient unencumbered assets to satisfy the award.
According to a report by moneycontrol, shares of Fortis uproared as the news hit the streets.