IHH Healthcare’s indirect subsidiary, Singapore-headquartered Northern TK Venture (NTK), says Daiichi Sankyo’s latest release dated May 22 contains “misleading statements” that continue to damage NTK’s interests.
In the release, the Japanese drugmaker said NTK’s claims that it interfered with the latter’s open offer are “without any merit or substance” and that the claims are “not sustainable”.
In its rebuttal, NTK maintained that Daiichi Sankyo has caused the company “significant losses” by preventing NTK from proceeding with the open offers. NTK said it will also seek an injunction to prevent Daiichi Sankyo from making defamatory remarks and specific actions to vindicate its reputation.
“NTK’s claims against Daiichi Sankyo are tort claims premised on Daiichi Sankyo’s unlawful interference with NTK’s trade or business, conspiracy of Daiichi Sankyo and other persons, malicious falsehood, and defamation, each under the applicable substantive laws,” reads NTK’s May 29 statement.
NTK also said it will not correct inaccuracies in the statement, given that the case is pending at the Tokyo District Court, but it will continue to “present the correct facts” and pursue its claims before the Tokyo District Court to obtain reliefs including the recovery of damages from the Japanese drugmaker.
In February, IHH Healthcaresaid NTK was seeking compensation of up to 109.3 billion Indian rupees or $1.7 million from Daiichi Sankyo for its purchase of a share stake in India’s Fortis Healthcare. NTK had filed a claim against Daiichi Sankyo in October 2023 saying the latter prevented NTK from proceeding with its open offer to acquire a stake in Fortis Healthcare in 2018.
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At the time, NTK sought an initial claim of 20 billion yen ($178 million) as damages in November 2023, including interest at the rate of 3% per annum.
In May, NTK increased the amount in damages to 200 billion yen. The revised figure comes after NTK submitted a preparatory brief with an expert report which sets out the losses the company suffered based on three counterfactual scenarios assuming that the open offer proceeded without Daiichi Sankyo’s interference.
In August 2018, IHH acquired a 31.1% controlling stake in Fortis Healthcare for 40 billion rupees, which triggered an open offer to acquire another 26% of shares in Fortis from the market.
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However, IHH was unable to proceed with its open offer in December 2018 after a court ruled that the status quo should be maintained. The court ruling came after Daiichi Sankyo filed a contempt plea against Fortis Healthcare' founders Malvinder Mohan Singh and Shivinder Mohan Singh.
As at 10.52am, shares in IHH are trading flat at $2.09.
