KUALA LUMPUR (Sept 23): IHH Healthcare Bhd's share price slipped as much as 26 sen on Friday (Sept 23) as investors reacted to news that India’s Supreme Court refused to lift the stay on IHH’s open offer for Fortis Healthcare Ltd shares.
On Friday, IHH fell as much as 26 sen or 4.33% to RM5.74, before closing the day at RM5.80, with 10.04 million shares exchanged hands. At RM5.80, the group is valued at RM51.5 billion.
The counter was also ranked ninth among Bursa Malaysia's top losers for the day.
Meanwhile, the stock had last traded below RM5.80 about 13 months ago on Aug 23, 2021, when it closed at RM5.71.
India’s top court on Thursday (Sept 22) ordered a forensic audit of the 2018 Fortis-IHH deal and refused to allow the open offer from IHH to proceed, according to media reports.
The court sought a probe into the sale of shares in Fortis by lenders and transfer of money to RHT Health Trust on a petition filed by Japanese drug maker Daiichi Sankyo Co. A lower court will decide whether the open offer for Fortis can be allowed based on the evidence it gets, Bloomberg reported.
Daiichi had acquired pharmaceutical firm Ranbaxy in 2008 from Malvinder Singh and Shivinder Singh, who are also the former owners of Fortis.
The Indian court on Thursday also sentenced the brothers to six months in jail, on charges of contempt of court. Daiichi is seeking execution of a US$500 million award in the Delhi High Court against the brothers, who are already in jail on separate fraud and money laundering charges.
IHH had acquired a 31% controlling stake in Fortis in August 2018, triggering an open offer to acquire another 26% of Fortis shares from the market. The Indian Supreme Court, however, stayed the open offer in December 2018, after Daiichi filed a plea against it.
Subsequently, IHH in a Bursa filing on Thursday, said the group has been advised by its Indian counsel to wait for the written judgement before announcing the court decision.
"IHH is in the process of obtaining the written judgement from the Supreme Court of India and seeking legal advice on the impact thereof on the transaction," the group said.
Top Indian court orders forensic audit on Fortis-IHH Healthcare share sale