IHH stock price at lowest in 13 months

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KUALA LUMPUR (Sept 23): IHH Healthcare Bhd’s share price fell 26 sen on Friday (Sept 23) as investors reacted to news of India’s Supreme Court’s refusal to lift the stay of the IHH’s open offer for Fortis Healthcare Ltd shares.

On Friday, the IHH fell 26 sen or 4.33% to RM5.74, before closing the day at RM5.80, with 10.04 million shares traded. At RM5.80, the group is valued at RM51.5 billion.

The counter was also ranked ninth among Bursa Malaysia’s top losers for the day.

Meanwhile, the stock last traded below RM5.80 about 13 months ago on August 23, 2021, when it closed at RM5.71.

India’s top court on Thursday (September 22) ordered a forensic audit of the 2018 Fortis-IHH deal and refused to allow IHH’s open bid to continue, according to media reports.

The court has called for an investigation into the sale of Fortis shares by lenders and the transfer of money to RHT Health Trust on a petition filed by Japanese drugmaker Daiichi Sankyo Co. A lower court will decide whether the open offer for Fortis may be authorized on the basis of the evidence it obtains, Bloomberg reported.

Daiichi had acquired the pharmaceutical company Ranbaxy in 2008 from Malvinder Singh and Shivinder Singh, who are also the former owners of Fortis.

The Indian court also sentenced the brothers to six months in prison on Thursday for contempt of court. Daiichi is seeking the enforcement of a US$500 million sentence in the Delhi High Court against the brothers, who are already in jail on separate charges of fraud and money laundering.

IHH had acquired a majority stake of 31% in Fortis in August 2018, triggering an open offer to acquire an additional 26% of Fortis shares on the market. India’s Supreme Court, however, suspended the open bid in December 2018, after Daiichi filed a plea against it.

Subsequently, the IHH, in a filing Thursday in Bursa, said the group had been advised by its Indian lawyer to wait for the written judgment before announcing the court’s decision.

“IHH is in the process of obtaining the written judgment from the Supreme Court of India and seeking legal advice on its impact on the transaction,” the group said.

Read also:
Top Indian court orders forensic audit over sale of Fortis-IHH Healthcare shares

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