IHH committed to making offer for more Fortis shares

By BERNAMA / Pic BERNAMA

MALAYSIA’S IHH Healthcare Bhd has said it is committed to making an open offer for additional shares in India’s Fortis Healthcare Ltd as it awaits a court decision on the issue.

IHH Healthcare acquired a 31% controlling stake in the Indian hospital chain in 2018, which triggered the requirement to make a mandatory open offer to the public shareholders of Fortis Healthcare for 26% of the outstanding shares, under the applicable provisions of the Indian takeover code.

“Growing in India remains a priority for IHH Healthcare as it is one of our four home markets, besides Malaysia, Singapore and Turkey,” Dr Kelvin Loh, MD and CEO of IHH Healthcare, said in a statement on Monday.

The statement comes as India’s Supreme Court is due to rule on whether IHH Healthcare can be allowed to proceed with its open offer to acquire additional shares in Fortis Healthcare.

“We respect and have full faith in the judicial process in India and look forward to a favourable outcome so that we can proceed with the open offer,” Dr Loh said.

IHH Healthcare said it is implementing a turnaround plan for Fortis Healthcare, and the hospital chain has strengthened its balance sheet, improved its financial liquidity and streamlined its organisational structure in the last two years.