IHH seeks up to $1.7b in compensation from JP’s Daiichi Sankyo over Fortis deal

Northern TK Venture filed a claim against Daiichi Sankyo saying the latter prevented NTK from proceeding with its open offer.

IHH Healthcare is seeking compensation of up to $1.7b (₹109.3b) from Japanese drugmaker Daiichi Sankyo for its stake buy in India’s Fortis Healthcare.

In 2018, IHH bought a 31.1% controlling stake in Fortis Healthcare for $618m (₹40b), allowing an open offer to acquire another 26% of Fortis shares from the market.

However, IHH terminated its offer after a court ruling ordered the status quo to be maintained concerning the sale of a controlling stake in Fortis Healthcare to NTK be maintained after Daiichi Sankyo filed a contempt plea against Fortis Healthcare's founders.

In 2023, IHH’s subsidiary Northern TK Venture (NTK) filed a claim against Daiichi Sankyo saying the latter prevented NTK from proceeding with its open offer to acquire a stake in Fortis Healthcare.

At that time, NTK sought an initial claim of ¥20b ($178m) from Daiichi Sankyo as damages with an interest rate of 3% per annum.

NTK-appointed consultant Osborne Partners said the compensation ranges from $60m (RM200m) to $1.7b (RM5.7b).

“NTK reserves its rights to amend its claim for damages, including to add other heads of loss and/or to claim the costs of the legal fees it is seeking from Daiichi Sankyo,” it added.