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Fortis Healthcare seeks legal advice after Supreme Court orders forensic audit on its share sale

The Supreme Court on Thursday sentenced the former promoters of Fortis Healthcare Ltd to six months in jail

The Supreme Court on Thursday sentenced the former promoters of Fortis Healthcare Ltd to six months in jail

Fortis Healthcare on Thursday said it is seeking legal advice to decide its future course of action after the Supreme Court ordered a forensic audit of its stake sale to Malaysia’s IHH Healthcare.

Similarly, IHH Healthcare also said it is awaiting the Supreme Court’s written judgment and seeking legal advice on the impact of the order on the acquisition of Fortis Healthcare.

In a regulatory filing, Fortis Healthcare said the proceedings before the Supreme Court “concluded with specific directions and disposed of the impugned contempt. We are seeking legal advice to determine our future course of action.”

IHH Healthcare, in a separate statement, said its Indian counsel advised it to wait for the written judgment before announcing the Supreme Court’s decision.

It is in the process of obtaining a written judgment from the Supreme Court of India and “seeking legal advice on its impact on the transaction”.

“Further announcement regarding Fortis Open Offer and Malar Open Offer will be issued after receipt of copy of the said judgment,” it said.

The Supreme Court on Thursday sentenced former Fortis Healthcare Ltd promoters Malvinder Singh and Shivinder Singh to six months in jail in a case related to the sale of Fortis shares to Malaysia-based IHH Healthcare.

The Supreme Court has also ordered a forensic audit of the sale of shares of Fortis Healthcare Limited.

In December 2018, the Supreme Court ordered a stay on the sale of controlling stake in Fortis Healthcare to IHH Healthcare Berhad by former Ranbaxy promoters and hospital operators — Malvinder Singh and Shivinder Singh.

The apex court was hearing a plea by Japanese firm Daiichi Sankyo seeking recovery of Rs 3,500 crore by a Singapore tribunal against the Singh brothers.

The apex court order stayed IHH’s open offer for an additional 26% stake in Fortis, which was scheduled to commence on December 18, 2018, and would have raised a total of ₹3,300 crore on January 1, 2019.

The proposed open offer followed IHH clinching a Rs 4,000 crore deal to acquire a 31.1 per cent stake in Fortis Healthcare in July 2018. IHH edged out rival Manipal-TPG alliance in the competition.

Fortis Healthcare shares ended down 14.75% at ₹265.3 apiece on BSE on Thursday.

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