Shares in IHH Healthcare Bhd slipped nearly 1% in afternoon trading today as uncertainty surrounding its mandatory takeover offer (MTO) for Fortis Healthcare continues to weigh on the stock.
As at 2.51 pm, IHH fell 8 sen or 0.99% to RM8.00, with 904,100 shares traded.
The stock opened at RM8.08 and moved between an intraday high of RM8.09 and a low of RM7.99. Its previous closing price was RM8.08.
The weakness comes after CIMB Securities maintained its BUY call on IHH with a target price of RM10.30, saying a forensic audit ordered by the Delhi High Court could further delay the suspended MTO but should have limited direct impact on IHH.
The MTO was triggered after IHH acquired a 31.17% stake in Fortis in December 2018. The offer for an additional 26% stake has remained suspended amid legal proceedings involving Daiichi Sankyo and former Fortis promoters Malvinder and Shivinder Mohan Singh.
CIMB Securities said the latest Delhi High Court order does not directly affect IHH, although the forensic audit could prolong the MTO overhang.
The research house also expects limited shareholder take-up even if the suspension is lifted, given Fortis’ current share price of INR907 is significantly above IHH’s original offer price of INR170.
CIMB Securities said IHH could explore alternatives, including a potential share-swap involving Gleneagles India and Fortis, which could increase its effective Fortis stake by around 5-6 percentage points to 36-37%.
The research house said such a move could potentially add 1-2% to its target price, while leaving its FY26-FY28 earnings forecasts unchanged.
