No collusion with former promoters of Fortis Healthcare, says IHH

IHH acquired 31 per cent stake in Fortis last July, after a four-month bidding war involving rival hospital chains and private equity firms.

IHH Healthcare Bhd (IHH), a Malaysian company, has denied colluding with the former promoters of Fortis Healthcare, after the Supreme Court extended its stay on an open offer that would give it majority control of the latter.

IHH acquired 31 per cent stake in Fortis Healthcare last July, after a four-month bidding war involving rival hospital chains and private equity firms.

However, the subsequent proposed open offer to acquire an additional 26 per cent in Fortis is stuck due to the apex court's order.

Last Friday, the Supreme Court initiated contempt proceedings against Fortis and held its former promoters, Malvinder Singh and Shivinder Singh, guilty of contempt of court, in a plea initiated by Japanese drugmaker Daiichi Sankyo.

The court also extended its stay on the open offer.

In a stock exchange filing in Malaysia on Monday, IHH said: “The board further states that the subscription (of Fortis shares) was undertaken and completed (through a process run by the reconstituted Fortis board) after Malvinder Mohan Singh and Shivinder Mohan Singh were no longer in control of Fortis.

IHH has at no time dealt with nor colluded with the erstwhile promoters or any entities related or controlled by them in relation to the subscription.”

Business Standard