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IHH Healthcare sues Daiichi Sankyo for $132 million over Fortis deal

EditorAmbhini Aishwarya
Published 11/14/2023, 03:58 PM
Updated 11/14/2023, 03:58 PM
© Reuters.

IHH Healthcare, Asia's largest private healthcare group headquartered in Malaysia, has initiated legal action against Japan's Daiichi Sankyo, seeking damages for alleged interference in its acquisition of a stake in India's Fortis (NYSE:FTS) Healthcare. The lawsuit centers on events dating back to 2018 and was filed by IHH's subsidiary, Northern TK Venture (NTK), in mid-October.

NTK's lawsuit, lodged at the Tokyo District Court, demands compensation exceeding 20 billion yen (approximately $131.86 million). The legal claim was spurred by Daiichi Sankyo's actions, which NTK asserts caused significant losses through obstructing open offers to acquire a stake in Fortis Healthcare. Specifically, the claim filed on Monday accuses Daiichi Sankyo of unlawful interference with trade or business, conspiracy, malicious falsehood, and defamation.

The dispute traces back to December 2018 when Daiichi Sankyo's contempt plea against the founders of Fortis led to a court ruling that put IHH Healthcare's open offer to purchase an additional 26% stake in Fortis on hold. This legal hurdle effectively suspended IHH's efforts to expand its shareholding in the Indian healthcare provider.

In addition to monetary damages, NTK is seeking a court injunction aimed at preventing future defamatory actions by Daiichi Sankyo. Despite the legal proceedings, IHH Healthcare has conveyed that it does not expect this issue to have a significant impact on its operations or financial health.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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