Shares of Fortis Healthcare fell nearly 20% on Thursday and their biggest fall in nearly 15 years, after reports the apex court ordered a stay on IHH Healthcare’s open offer for the company to continue.
As reported by CNBC TV-18, the Supreme Court referred the issue of the Fortis-IHH deal to the Delhi High Court and directed it to consider the appointment of a forensic auditor.
Reuters was not able to review the order immediately.
IHH had won the bid for a 31% stake in Fortis in 2018, which initiated an open offer for another 26% as per Indian regulations.
The Supreme Court had blocked the open offer based on a petition filed by Japanese drugmaker Daiichi Sankyo, which sought to enforce an arbitration award won at a Singapore tribunal against Fortis’ founding brothers Malvinder Singh and Shivinder Singh over fraudulent claims. did.
In a statement to the exchanges on Thursday, Fortis said, “…Proceedings before the Supreme Court have concluded with certain directions and contempt has automatically been disposed of. We are looking forward to the future course of action.” Seeking legal advice to decide.”
Fortis shares fell the most since January 2008, with trading volume nearly 21 times higher than the 30-day average as of 0807 GMT.
IHH and Daiichi did not immediately respond to Reuters requests for comment.