IHH Healthcare said its unit is seeking compensation of up to 109.3 billion Indian rupees ($1.7 billion) from Japanese drugmaker Daiichi Sankyo Co Ltd for its stake buy in India’s Fortis Healthcare.
In October 2023, IHH’s subsidiary Northern TK Venture (NTK) had filed a claim against Daiichi Sankyo saying the latter prevented NTK from proceeding with its open offer to acquire a stake in Fortis Healthcare back in 2018.
At that time, NTK had sought an initial claim of 20 billion Japanese yen ($178 million) from Daiichi Sankyo as damages in November 2023, together with interest at the rate of 3% per annum.
Nevertheless, after a report conducted by NTK-appointed consultant Osborne Partners, the group said that the compensation ranges from RM200 million to RM5.7 billion, “depending on what relevant parameters are applied”, IHH’s filings with the local bourse on Thursday shows.
The company said the report was submitted to the Tokyo District Court on Thursday.
“NTK reserves its rights to amend its claim for damages, including to add other heads of loss and/or to claim the costs of the legal fees it is seeking from Daiichi Sankyo,” it added.
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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.
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.
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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.
See more: IHH’s indirect unit seeks over RM634 mil in damages over Fortis deal dispute
IHH closed at $2.20 flat on Feb 6 on SGX, while it ended one sen or 0.14% higher at RM7.25 on Bursa.
This article was first published on The Edge Malaysia.
