IHH says Sebi has advised it to go ahead with Fortis open offer after getting High Court order

Malaysia’s IHH Healthcare, the largest shareholder in Fortis Healthcare, on Thursday said the Securities and Exchange Board of India (SEBI) has advised that they should proceed with the open offer after obtaining an appropriate order from the Delhi High Court.

In view of the advice from the SEBI, IHH is obtaining advice from legal counsel on next steps, it said.

It however reaffirmed its commitment towards its investors and the India healthcare sector, and said that it will make appropriate announcement to Malaysia’s stock exchange in a timely manner, it further said.

IHH had earlier said that it will make an open offer for Fortis when markets regulator Sebi gives a go ahead as the Supreme Court has disposed of petitions against it in connection with its investment in the Indian healthcare service provider.

“The court has not found nor indicated any wrongdoing by IHH in terms of our investment into Fortis in its final written judgment dated September 22, 2022. There is also currently no court order pending against IHH in these proceedings,” it had said.

IHH had said soon after it gets an approval from Sebi, it will be ready to undertake the offer in a timely manner.

“We certainly understand the frustration Fortis investors have felt over the past four years around the uncertainty of the IHH open offer,” said Kelvin Loh, managing director and CEO of IHH Healthcare. “With the recent Supreme Court judgement making clear that we have conducted our investment into Fortis in a fair and transparent manner, we are discussing with Sebi to move ahead with the offer. Should they concur and approve, IHH is ready to proceed with the open offer as soon as possible,” he added.

Loh had said Fortis is IHH’s key growth platform in India. “We are hopeful for a positive outcome so that we can explore more avenues to work with Fortis to accelerate its growth plans…,” he said.

(With inputs from health)