IHH Healthcare committed to Fortis Healthcare takeover

18 Nov 2019 / 14:29 H.

PETALING JAYA: IHH Healthcare Bhd said it remains committed to the acquisition of an additional 26% stake in Fortis Healthcare Ltd and Fortis Malar Hospitals Ltd once the stay is lifted by the Supreme Court of India.

This comes after a ruling by the Supreme Court of India on Nov 15, in which it held Fortis’ founders Malvinder Mohan Singh and Shivinder Mohan Singh guilty of contempt.

“In light of the judgement, the Fortis open offer as well the Malar open offer (which is subject to the completion of the Fortis open offer) will not proceed for the time being...The next hearing date for this matter is Feb 3, 2020. IHH is seeking appropriate legal advice on this matter and will subsequently decide on the future course of action,” it said in a filing with the stock exchange.

IHH, via Northern TK Venture Pte Ltd, had in last November completed the purchase of 31.1% of Fortis for RM2.35 billion.

“The board also wishes to inform that the subscription was undertaken in a fair and transparent manner, after obtaining the requisite corporate and regulatory approvals and in accordance with all applicable laws.”

“The board further states that the subscription was undertaken and completed (through a process run by the reconstituted Fortis board) after Malvinder and Shivinder were no longer in control of Fortis. IHH has at no time dealt with nor colluded with them or any entities related or controlled by them in relation to the subscription,” IHH added.

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