Shares of Fortis Healthcare tumbled around 20% on Thursday: Shares of Fortis Healthcare on Thursday sank nearly 20 percent and witnessed their biggest slide in nearly 15 years, after Supreme Court ordered the continuation of a stay on IHH Healthcare’s open offer for the company.
Reportedly, the Supreme Court also remanded the issue of the Fortis-IHH deal to the Delhi High Court and directed it to consider a forensic auditor’s appointment.
In 2018, IHH had won a bid for a 31 percent stake in Fortis, which triggered an open offer for another 26 percent as per the country’s regulations.
The judges said that the lower court will decide on whether the open offer for Fortis can be allowed based on the evidence it gets. “Everything goes back to the executing court,” said Justice Lalit as quoted by Bloomberg.
Meanwhile, the Supreme Court had blocked the open offer based on a plea filed by Japanese drugmaker Daiichi Sankyo, who tried to enforce an arbitration award it won in a Singapore tribunal on a fraud claim against Fortis’ founder brothers Malvinder Singh and Shivinder Singh.
“We understand that the proceedings before the Hon’ble Supreme Court have concluded with certain directions and the suo-motu contempt has been disposed off. We will go by the directions of the Hon’ble Supreme Court and will be seeking legal advice regarding our future course of action. We remain committed to our core purpose of patient care and will continue to focus on our strategic and operational objectives to further strengthen and expand our healthcare network. We will keep all our stakeholders informed, as required.” Fortis said in a statement to exchanges on Thursday.
Fortis’ shares dropped by their most since January 2008, with trading volumes at around 21 times the 30-day average.