Japanese drug maker Daiichi Sankyo, locked in a legal battle with the promoters of Fortis Healthcare, has alerted regulatory bodies and the stock exchanges against any potential stake sale in the hospital chain, saying such a transaction would violate a Supreme Court order.
An official spokesperson for Fortis promoters Malvinder and Shivinder Singh declined to comment on the matter and denied that they had violated any court order.
Daiichi wrote to the Securities & Exchange Board of India, the Reserve Bank of India, the BSE and the National Stock Exchange about alleged talks for a stake sale by the Fortis promoters on December 20, the Japanese company’s counsel said.
This is “so that the regulatory approvals are not obtained without the statutory authorities in knowledge of them,” Daiichi’s counsel told ET in an emailed response about the development. It is also meant to put potential buyers “on notice” before entering into any transaction, according to the counsel.
The letters are meant to ensure the regulators can act against the sellers and buyers in the event of a sale, the counsel said.
The drug maker also informed the counsels for the Singh brothers and their holding companies that they are bound by court orders to maintain the status of their shareholding in Fortis, the counsel added.
Daiichi wrote the latest letters after news reports suggested potential buyers were gearing up to purchase the stake in Fortis. Alleged discussions between the promoters and Abu Dhabi-based VPS Healthcare served as the final trigger, the counsel added.
“We do not comment on rumours and speculative allegations. However, we would like to categorically state that Fortis Healthcare promoters have not violated any order/s of the honourable Supreme Court of India,” said the spokesperson for RHC Holding Pvt, the holding company for the Singhs.
The counsel said Daiichi’s objective is to ensure sufficient assets are available to satisfy an award it was granted against the Singh brothers in April 2016. Daiichi, based in Tokyo, has been in litigation against the Singh brothers since 2013.
Source: Economic Times