The Supreme Court refused to lift the moratorium on IHH Healthcare’s open offer for Fortis and instead ordered a forensic audit of the share sale.
The Supreme Court, in its order on Daiichi’s petition regarding the sale of Fortis to IHH, directed the Delhi High Court to rule on the open offer.
The order follows Daiichi Sankyo, a Japanese pharmaceutical firm, filing a petition opposing the Fortis-IHH deal. Daiichi attempted to collect a Rs 3,600 crore arbitration award from Fortis’ former promoters, Malvinder Singh and Shivinder Singh.
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The Singh brothers were sentenced to six months in prison by the Supreme Court.
In 2018, Malaysian firm IHH Healthcare paid $1.1 billion for a 31% stake in Fortis. Daichii Sankyo had objected to the sale of pledged shares in Fortis, claiming ownership rights.
The stock’s trading volume is 14 times that of the 30-day average. According to Bloomberg data, all 11 analysts following Fortis maintain a ‘buy’ rating. The 12-month consensus price target implies a 13.4% increase.