Delay in open offer: IHH says it 'understands concerns' of Fortis' minority shareholders

Malaysian firm IHH Healthcare Friday said it "understands the concerns" of the Fortis Healthcare's minority shareholders over the delay in the open offer but stressed that it would proceed with the offer only when the stay is lifted by the Supreme Court.

Pointing to the reason for the delay in the open offer, IHH Healthcare said it was on account of the stay imposed on it by the Supreme Court in the contempt case filed by Daiichi Sankyo.

"IHH understands the concerns of the Fortis Healthcare minority shareholders regarding the delay in the open offer," an IHH spokesperson said in a statement.

The delay is due to the stay imposed on the open offer by the Supreme Court of India in the contempt case filed by Daiichi Sankyo, even though neither Fortis nor IHH were parties to the original proceedings, it added.

However, Fortis has since joined the proceedings to persuade the Supreme Court to lift the stay so that, amongst other things, the open offer can proceed, the statement said.

"IHH would like to reiterate that we are committed to proceeding with the open offer once the stay is lifted by the Supreme Court. Our commitment is demonstrated through us depositing Rs 3,400 crore in a non-interest bearing escrow account for the open offer," it added.

The case and the resultant delay in the open offer are taking up Fortis' management bandwidth. At the same time, the minority shareholders are unable to exercise their exit opportunity, the statement said.

IHH continues to work with Fortis on the matter and is in full support of Fortis' representations to the Supreme Court, pleading it to lift the stay. The case is now at the judgment delivery stage, it added.

"IHH has full faith and confidence in the Indian judicial system and hopes for a speedy resolution to the matter," the statement said.

As per a media report on Thursday, some minority shareholders of Fortis Healthcare have moved the Securities and Exchange Board of India (Sebi) to issue directions to IHH Healthcare to pay interest to shareholders for the delay in the open offer to buy an additional 26 per cent stake in Fortis Healthcare.