No stay on Fortis stake sale plan yet

Our Bureau New Delhi | Updated on January 12, 2018 Published on January 17, 2017

Daiichi Sankyo had sought a stay on plans by Malvinder and Shivinder Singh to sell over 26% in the healthcare firm

The battle between the Singh brothers of Fortis and Japanese pharma company Daiichi Sankyo has reached a stalemate for now.

The Japanese firm had sought a stay on plans by billionaire brothers Malvinder and Shivinder Singh to sell over 26 per cent stake in Fortis, a move that has been in the offing for a few months now.

The Delhi High Court, which is considering a case filed by the latter, seeking payment of penalties by the brothers as determined by a Singapore Tribunal, however, has not given relief to Daiichi for now. The next hearing of the case is scheduled on January 23.

The Singapore Tribunal had ordered the Singh brothers to pay $385 million as damages to Daiichi Sankyo, for allegedly hiding crucial information before selling majority stake to the Japanese firm in 2008. The matter was challenged in the Delhi High Court by the promoters of Fortis, claiming the order could not be enforced in India.

Fortis refused to respond to queries regarding the case as the matter is sub-judice.

However, a source close to the developments said, “The board of directors had approved fund-raising plans in August last year. This stake sale is a fund raising venture. The High Court has not taken any action against in the matter now, holding the previous verbal assurance as being sufficient.”

The Singh brothers had earlier given a verbal assurance before the court that they have kept aside assets for paying damages once the court gives its final order in the matter. The High Court has not insisted on a written assurance, as demanded by Daiichi Sankyo.

Published on January 17, 2017
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