India’s Supreme Court finds no wrongdoing by IHH Healthcare in Fortis investment

by S BIRRUNTHA / pic source: IHH Healthcare FB

IHH Healthcare Bhd has announced that the latest judgement from India’s Supreme Court found no wrongdoing in its investment of a 31.1% controlling stake in Fortis Healthcare Ltd in 2018.

In a filing to Bursa Malaysia on Sept 26, the Malaysia-based healthcare company reaffirmed its commitment to its patients in India, and to Fortis Healthcare and IHH Healthcare investors. 

It added that the judgment does not in any way alter the company’s commitment to growing its healthcare operations and serving patients in India in line with its “Care. For Good” aspiration across all 82 hospitals in its 10 markets.

“We remain steadfast in our ability and commitment to executing our business plans to grow our operations and serve the healthcare needs of our patients in India with care and excellence, while protecting the interests of our stakeholders.

“Over the last quarter and through the pandemic, Fortis Healthcare has anchored its claim as one of the leading healthcare platforms in India and IHH Healthcare is committed to standing firm on Fortis Healthcare’s side to continue this growth journey,” it said.

In light of the misconceptions which exist, IHH Healthcare also clarified that the judgment by the Supreme Court of India supports its belief that the company’s investment in Fortis Healthcare was undertaken in a fair and transparent manner.

It noted that for the mandatory tender offer for IHH Healthcare to acquire an additional 26.1% stake in Fortis Healthcare, IHH Healthcare is obtaining further advice and is in discussions with relevant authorities to determine the next steps, in full compliance with all requisite regulations in India.

At the time of writing, IHH Healthcare’s share price is up one sen or 0.17% to RM5.96, giving it a market capitalisation of RM52.48 billion.