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IHH Healthcare says no wrongdoing found in Fortis investment

Felicia Tan
Felicia Tan • 2 min read
IHH Healthcare says no wrongdoing found in Fortis investment
Fortis is one of India's leading private hospital chains.
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IHH Healthcare, on Sept 26, released a statement to reaffirm its commitment to its patients in India, to Fortis as well as investors in the group.

The statement was made after the group was “aware” that there was “keen interest” regarding the latest judgement made by the Indian Supreme Court on “various legal proceedings undertaken by Daiichi Sankyo Company Limited in relation to certain other parties, into which Fortis Healthcare Limited (Fortis) has been drawn.”

The statement also referred to an article dated Sept 23 by The Edge Markets, which noted the slip in IHH’s share price on the Malaysian Bursa to the lowest in 13 months. The same was true for IHH’s SGX-listed shares, which came in at a 52-week low as at the close of Sept 23. The decline in share price came after the Indian Supreme Court’s decision to not lift the stay on IHH’s open offer for shares in Fortis.

Read the rest of the story here.

In its statement, IHH Healthcare noted that the court did not find or indicate any wrongdoing by the group in terms of their investment in Fortis.

Furthermore, the judgement from the Indian Supreme Court “supports [the group’s] belief that [its] investment into Fortis was undertaken in a fair and transparent manner”.

See also: New Fortis CEO plans fixes after Singh brothers' alleged fraud

“We remain steadfast in our ability and commitment to execute our business plans to grow our operations and serve the healthcare needs of our patients in India with care and excellence while protecting the interests of our stakeholders,” it adds.

In addition, IHH expressed its commitment to “stand firm” on Fortis’ side to “continue this growth journey”. “Over the last quarter and through the pandemic, Fortis has anchored its claim as one of the leading healthcare platforms in India,” the group says.

Besides, the special leave petition (SLP), the original contempt petition and the suo moto contempt petition were made with a direction to the high court to analyse the transactions entered into between Fortis and RHT Health Trust through the “appropriate processes”.

See also: Health care, not 'sick care'

As at Sept 26, IHH remains Fortis’ largest shareholder with a 31.1% stake.

Shares in IHH closed 4 cents higher or 2.24% up at $1.83 on Sept 26.

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