The Supreme Court (SC) on Friday put Fortis Healthcare sale on hold.
Shares of Fortis Healthcare dropped nearly 7 percent and ended the day at Rs 141.65 per share on the BSE.
Daiichi Sankyo had moved the SC in a contempt plea against Malvinder and Shivinder Singh.
Daiichi argued Singh brothers created encumbrances on 12 lakh shares of Fortis Healthcare in violation of SC orders.
SC, while putting the sale on hold, issued notices to Singh brothers and Fortis Healthcare.
On November 13, Fortis Healthcare said it had issued 23.53 crore equity shares through preferential allotment to IHH Healthcare Berhad for around Rs 4,000 crore. The allotment was done at Rs 170 per share giving IHH 31.1 percent stake in the company.
Open offer by Malaysian firm IHH Healthcare Berhad to acquire additional 26 percent stake in Fortis Healthcare was supposed to commence on December 18 and close on January 1, 2019.
Northern TK Venture Pte Ltd together with IHH Healthcare Berhad and Parkway Pantai Ltd had made an open offer to the equity shareholders of Fortis Healthcare to acquire up to 19.70 crore shares, representing 26 percent of the expanded voting share capital, at a price of Rs 170 per share payable in cash, the letter said.
Fortis Healthcare shareholders, in August, had backed the deal with IHH as the latter outbid rival TPG-Manipal.
Fortis Healthcare, which has extended the deal deadlines three times, had shortlisted two entities to bid for the sale of its business.
As per the criteria set by the Fortis board, the buyers had to make a minimum investment of Rs 1,500 crore into Fortis Healthcare by way of preferential allotment apart from having a plan for funding the acquisition of RHT Health Trust (RHT) and a plan for providing an exit to private equity investors of diagnostic arm SRL.
Competition Commission of India (CCI) approved the IHH Healthcare’s acquisition of a controlling stake in Fortis Healthcare on October 31.
First Published: IST