KUALA LUMPUR (Oct 14): No appeal has been filed by Emqore Envesecure Private Capital Trust against a court decision to dismiss the US fund’s lawsuit seeking over US$6.5 billion (RM30.56 billion) in damages from IHH Healthcare Bhd and others.
Disclosing this in a stock exchange filing on Friday (Oct 14), IHH said Emqore had a 30-day window to file an appeal against the New Jersey District Court’s order dated Sept 7.
“IHH will make further announcements as and when there are material developments on the above matter,” it added.
Emqore filed the suit against IHH and 27 other named defendants in June 2020, pertaining to allegations in connection with the issuance of India-based Fortis Healthcare Ltd’s shares to IHH’s subsidiary in 2018.
Emqore claimed it had suffered losses as the defendants had allegedly conspired to frustrate a proposed share acquisition transaction between Fortis and Emqore’s supposed predecessors.
In dismissing the claim, the US court however attached conditions which would enable Emqore to reopen and pursue its claims in the Indian courts, regardless of the statute of limitations.
IHH is also involved in another matter in the Indian courts pertaining to its open offer for Fortis’s shares, whereby the offer is currently on pause while a court-directed forensic audit is being conducted.
The probe is concerning the sale of shares in Fortis by lenders and the transfer of money to RHT Health Trust on a petition filed by Japanese drug maker Daiichi Sankyo Co.
Daiichi had in 2016 won an arbitration award worth over US$500 million against former Fortis owners Malvinder Singh and Shivinder Singh, in a dispute around the 2008 sale of their generic drug-making firm Ranbaxy Laboratories Ltd to Daiichi.
However, when Indian lenders sold the Singh brothers’ pledged shares in Fortis to IHH in 2018, the drugmaker objected and said that the brothers had on oath assured that the Fortis shares would cover the award amount.
In August 2018, IHH acquired a 31% controlling stake in Fortis and triggered 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.
Shares in IHH Healthcare ended 12 sen or 2.14% higher at RM5.72 on Friday, giving the group a market capitalisation of RM50.37 billion.