Hospital chain Fortis Healthcare said on Thursday that it will seek legal advice on its future course of action after the Supreme Court ordered the continuation of a stay on IHH Healthcare’s open offer for the hospital group.
“We understand that the proceedings before the Supreme Court have concluded with certain directions and the suo motu contempt has been disposed-off,” Fortis said, reiterating its commitment to patient care and achieving its operational objectives.
The development sent the Fortis Healthcare stock price plummeting over 18 per cent on the day. It recovered towards the close at ₹265 on the BSE, down nearly 15 per cent. Reports said the apex court directed Delhi High Court to look into the case and consider a forensic audit, besides pronouncing a jail term of six months for the Singh brothers (Malvinder and Shivinder).
The Malaysian healthcare group IHH Healthcare also said it had been advised by its Indian counsel to wait for the written judgment. It was in the process of obtaining this and seeking legal advice on its impact on the transaction, the company said, following which it would update on the Fortis and Fortis Malar open offers.
IHH Healthcare had won the bid for Fortis in a long-fought battle (2018). Having picked up 31 per cent stake in Fortis, IHH was mandated to make an open offer for another 26 per cent. But, the ₹4,000-crore deal ran into a challenge from Japanese drugmaker Daiichi Sankyo, which was locked in a legal battle with the Singh brothers — erstwhile promoters of drugmaker Ranbaxy, and then promoters of Fortis as well.