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This article is more than 2 year old.

Fortis Healthcare shares tumble 17% after SC holds Singh brothers, company guilty of contempt

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Fortis Healthcare shares tank over 17 percent on Friday after Supreme Court holds Singh brothers, Fortis healthcare guilty of contempt. The Apex court said Malvinder and Shivinder Singh can 'purge' contempt by depositing Rs 1,175 crore each.

Fortis Healthcare shares tumble 17% after SC holds Singh brothers, company guilty of contempt
Fortis Healthcare shares tank over 17 percent on Friday after Supreme Court holds Singh brothers, Fortis healthcare guilty of contempt. The Apex court said Malvinder and Shivinder Singh can 'purge' contempt by depositing Rs 1,175 crore each.
Japanese drugmaker Daiichi had moved Supreme Court to launch contempt proceedings against the Singh brothers for non-payment of Rs 3500 crore arbitral award.
SC has also refused to lift stay on IHH Healthcare open offer for Fortis. In July 2018, Malaysia’s healthcare provider IHH Healthcare won a multi-pronged bidding war to acquire Fortis. nd completed the deal in November—buying a 31.1 percent stake through preferential allotment of shares.
IHH infused Rs 4,000 crore in Fortis, and put an additional Rs 3,400 crore in an escrow account to initiate an open offer, which is stuck due to a Supreme Court-ordered status quo on the IHH-Fortis deal.
The Supreme Court had reserved judgment in April 2019 after India's top court had previously upheld the Rs 3,500-crore arbitral award payable by the Singh brothers to Daiichi.
Daiichi bought control of Indian drugmaker Ranbaxy from a shareholder group led by the Singh brothers, the former promoters of Ranbaxy, in 2008, and alleged in 2013 that they hid information about US regulatory probes into the company.
Earlier this month, the company reported a profit of Rs 111 crore for the quarter ended September, as compared to a net loss of Rs 166.6 crore for the corresponding period of previous fiscal.
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