IHH Healthcare’s unit Northern TK Venture (NTK) is increasing damages sought against Japanese drugmaker Daiichi Sankyo Co Ltd by ten times, from 20 billion yen ($180 million) to 200 billion yen.
The lawsuit, first announced on November 14, 2023, arose from alleged obstruction by Daiichi Sankyo against NTK’s efforts to complete its open offers to acquire shares in Fortis Healthcare Limited, and its step-down subsidiary, Fortis Malar Hospitals.
NTK had initially sought 20 billion yen in damages, with an interest rate of 3% per annum. However, on Feb 6, NTK submitted a preparatory brief along with an expert report on the detailed assessment of losses that it suffered, based on three counterfactual scenarios assuming that the Open Offer had proceeded as originally scheduled and that Daiichi Sankyo had not interfered.
Including these counterfactual scenarios in the report, adding compensation for the losses suffered by NTK as a result of defamation and reputational harm, the revised figure for damages is now 200 billion yen, reads the document by IHH.
In August 2018, IHH bought 31.1% controlling stake in Fortis Healthcare for 40 billion rupees, triggering an open offer to acquire another 26% of Fortis shares from the market.
However, in December that year, IHH terminated its open offer to buy the additional 26% stake in Fortis Healthcare after a court ruling ordered status quo to be maintained with regard to the sale of a controlling stake in Fortis Healthcare to NTK be maintained, after Daiichi Sankyo filed a contempt plea against Fortis Healthcare' founders Malvinder Mohan Singh and Shivinder Mohan Singh.
See also: Kimly’s subsidiary buys Yishun Ring road coffee shop for $11 mil
IHH was thus unable to proceed with its open offer, which would have given it as much as 56% of Fortis, or take over Fortis Malar Healthcare Ltd.
The dispute between the Fortis Healthcare founders and Daiichi Sankyo pertained to the Mohan Singh brothers concealing information that their pharmaceutical company Ranbaxy was facing an investigation by the US Food and Drug Administration and the Department of Justice while selling their shares in Ranbaxy to Daiichi Sankyo.
Shares in IHH closed 1 cent lower or 0.476% down at $2.09 on May 20.
