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Malaysia’s IHH Healthcare has announced that it will not be able to proceed with the open offer for Fortis Healthcare after the development of Supreme Court order that instructed to put the sale of controlling stake of the Indian hospital chain on hold.
IHH Healthcare, however, has clarified that the Supreme Court’s order does not impact acquisition of 31.1% stake in Fortis Healthcare for Rs 4,000 crores which were completed on 13 November.
IHH in the regulatory filings said that the board of directors of IHH wishes to inform that the Supreme Court of India had on 14 December 2018 passed an order directing status quo with regard to the sale of the controlling stake in Fortis Healthcare to Malaysian IHH Healthcare Berhad be maintained.
The company added, “In light of the order, NTK and the PACs (persons acting in concert) will not be able to proceed with the Fortis open offer for the time being until further order(s)/ clarification(s)/ direction(s) are issued by the Supreme Court of India and/or the Securities and Exchange Board of India (SEBI).”
The open offer in the review is an additional 26% stake which was scheduled to commence on 18 December and close on 1 January 2019 entailing a total sum of Rs. 3,300 crores.
