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Singh brothers say Fortis Healthcare will grow stronger under IHH ownership

The brothers, however, did not comment on issues around the Fortis brand

Sudipto Dey  |  New Delhi 

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Shivinder Singh (left), Malvinder Singh (right)

On the day the country’s second-largest private chose a new owner, the erstwhile promoters of Fortis Healthcare, and Shivinder Singh, welcomed the move. “We are happy to note the successful completion and selection of IHH as the partner for Fortis,” the said.

Unlike Ranbaxy, the drug major that the brothers inherited and subsequently sold to Daiichi Sankyo, they co-founded Fortis with one hospital in 2001. Commenting on the future prospect of the healthcare chain, the brothers said they were confident that the organisation would grow stronger under the new ownership.

ALSO READ: IHH wins race to acquire Fortis with Rs 40-bn bid, beats TPG-Manipal

The brothers, however, did not comment on issues around the Fortis brand, the rights for which are with them. However, there are claims by certain parties and the case is in the courts. An investigation into the accounts of by law firm Luthra and Luthra concluded that they were to blame for mismanagement of the company’s finances.

Fortis management authorised the investigation following allegations that the Singhs had availed of unsecured loans worth Rs 4.45 billion without the approval of the board.

ALSO READ: Fortis accepts Rs 40-bn investment offer from IHH at Rs 170 per share

The did not respond to e-mailed questions in regard to brand ownership or give their reaction to the investigation findings. The brothers are currently embroiled with several investigations and legal cases involving Daiichi Sankyo, Religare Enterprises, among others.

First Published: Sat, July 14 2018. 00:07 IST