Top India court says no wrongdoing by IHH Healthcare in Fortis investment

Top India court says no wrongdoing by IHH Healthcare in Fortis investment
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KUALA LUMPUR (Sept 26): Malaysia-based IHH Healthcare Bhd has said the latest judgement from India's Supreme Court found no wrongdoing in its investment of a 31% controlling stake in Fortis Healthcare Ltd in 2018, reiterating that the latest development will not alter its commitment to growing its healthcare operations in India.

"We remain steadfast in our ability and commitment to executing our business plans to grow our operations and serve the healthcare needs of our patients in India with care and excellence, while protecting the interests of our stakeholders," it said in a filing with Bursa Malaysia on Monday (Sept 26).

"Over the last quarter and through the pandemic, Fortis has anchored its claim as one of the leading healthcare platforms in India and IHH is committed to standing firm on Fortis' side to continue this growth journey," it added.

IHH also said the judgement by India's top court supports the management's belief that the group's investment in Fortis was undertaken in a fair and transparent manner.

"IHH remains as Fortis' largest shareholder with a 31.1% stake, and the judgement does not in any way alter our commitment to growing our healthcare operations and serving patients in India in line with our 'Care. For Good’'aspiration across all 82 hospitals in our 10 markets," it added.

"For the mandatory tender offer for IHH to acquire an additional 26.1% stake in Fortis, IHH is obtaining further advice and is in discussions with relevant authorities to determine the next steps, in full compliance with all requisite regulations in India," it said.

Shares of IHH closed 15 sen or 2.59% higher at RM5.95 on Monday, giving it a market capitalisation of RM52.4 billion.

Kang Siew Li