Japanese drugmaker Daiichi Sankyo has moved the Supreme Court against the Delhi High Court’s June order that cleared the way for former Ranbaxy promoters Malvinder and Shivinder Singh to potentially sell a stake in Fortis Healthcare.
Japanese drugmaker Daiichi Sankyo has moved the Supreme Court against the Delhi High Court’s June order that cleared the way for former Ranbaxy promoters Malvinder and Shivinder Singh to potentially sell a stake in Fortis Healthcare. The SC is likely to hear the matter on August 11. Though the interim order of June 22 had ensured that the value of unencumbered assets held by the Singh brothers stake in holding companies – RHC Holding and Oscar Investments – should not change, the HC had said that “corporate transactions cannot be stalled at the behest of a decree holder, Daiichi in this case.” RHC Holdings has an 80.67% in Fortis Healthcare Holding while Oscar Investment holds the remaining 19.33%. Fortis Healthcare Holdings in turn has a 52.5% stake in Fortis Healthcare.
Daiichi, which is no longer the owner of Ranbaxy after it sold the company to another Indian pharmaceutical major Sun Pharma for $3.2 billion in 2014, had earlier sought to restrain the Singh brothers from selling assets, specifically Fortis Healthcare. A Singapore tribunal had last year ordered the Singh brothers to pay the Japanese drugmaker Rs 2,562-crore damages for concealing information regarding wrongdoing at Ranbaxy while selling it for $4.6 billion in 2008. The Singh brothers are contesting this arbitration award in the HC. Along with interest and legal fees, the total liability was last pegged at Rs 3,500 crore.
Daiichi had alleged the brothers had concealed crucial information while selling majority stake in Indian drugmaker Ranbaxy Laborataries for $4.6 billion in 2008. However, soon after, the Indian company came under the scrutiny of the United States Food and Drug Administrator for non-compliance with the manufacturing standards for exporting drugs to the US. Daiichi– the then new owners of Ranbaxy – had agreed to pay $500 million in settlement fees in 2013, but sought legal recourse to recover the amount from previous promoters – the Singh brothers, following which a Singapore tribunal last year ordered the brothers to pay $385 million (Rs 2,562 crore) as compensation.