IHH Healthcare Bhd’s indirect wholly-owned subsidiary Northern TK Venture Pte Ltd (NTK) said it disagrees with a judgment issued by the Tokyo District Court on Sept 10 and is reviewing all available legal remedies with its advisers.
NTK said it remains confident in the merits of its position and intends to continue protecting its rights through the appropriate legal channels.
The dispute is linked to IHH’s acquisition of India’s Fortis Healthcare Ltd, where the healthcare group maintains that it suffered losses because of delays in securing approvals for a mandatory tender offer amid a separate dispute involving Daiichi Sankyo and its judgment debtors.
IHH stressed that it was not a party to the underlying dispute between Daiichi Sankyo and those judgment debtors.
“IHH’s position is that it has suffered losses as a result of delays in obtaining the required mandatory tender offer approvals for its acquisition of Fortis Healthcare amid the dispute between Daiichi Sankyo and its judgment debtors, to which IHH is an unrelated party,” the group said.
IHH said NTK’s acquisition of Fortis in 2018 was carried out through a transparent, publicly disclosed and fully regulated process.
The transaction received the necessary corporate, shareholder and regulatory approvals, including clearances required by the Competition Commission of India and under the Securities and Exchange Board of India’s takeover regulations.
IHH invested INR4,000 crore in Fortis through a preferential allotment of newly issued shares, alongside a mandatory tender offer to public shareholders.
The group stressed that it did not acquire secondary shares from Fortis’ former promoters and made no payments to them.
The clarification is significant given that the legal complications surrounding IHH’s Fortis investment arose from a separate dispute involving Daiichi Sankyo and Fortis’ former promoters.
IHH also reaffirmed its long-term commitment to India, describing itself as one of the largest and longest-standing foreign direct investors in the country’s hospital sector.
The group said its investment in Fortis was made at a critical point when the Indian hospital operator required fresh capital and a renewed strategic direction.
The group also noted that the long-delayed mandatory tender offer process received the necessary approvals last year, marking another milestone in the completion of its Fortis investment.
NTK is now reviewing the Tokyo District Court judgment in detail with its legal counsel before deciding on its next course of action.
