Fortis Healthcare's promoter shareholder Northern TK Venture Pte Ltd. (NTK) has lost its long-running legal battle against Japan's Daiichi Sankyo, after the Tokyo District Court dismissed all claims brought by the IHH Healthcare-linked entity.
The court also ordered NTK to bear the costs of the litigation, according to an exchange filing by Fortis Healthcare on Friday. Fortis said the matter relates to material litigation filed by NTK, its promoter shareholder, against Daiichi Sankyo before the Tokyo District Court.
The judgment was delivered on September 10, according to IHH Healthcare's announcement attached to Fortis' filing.
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The case dates back to NTK's attempt to acquire a larger stake in Fortis Healthcare in 2018. NTK, an indirect wholly owned subsidiary of Malaysia-based IHH Healthcare, had acquired a 31% stake in Fortis and subsequently sought to proceed with an open offer for an additional 26% of the hospital chain.
NTK alleged that Daiichi Sankyo's actions prevented it from proceeding with the open offer and caused financial losses. The claim was filed before the Tokyo District Court in October 2023. Reuters reported that NTK later sought damages of up to Rs 10,930 crore ($1.15 billion).
The litigation was connected to the wider dispute surrounding Fortis' former promoters and Daiichi Sankyo, which had been pursuing enforcement of an arbitration award against the Singh brothers.
NTK had originally sought 20 billion yen in damages. The claim was subsequently increased substantially, with Daiichi Sankyo's disclosure putting the revised amount at about 203.3 billion yen.
Despite the adverse judgment, NTK has maintained that it disagrees with the court's decision and remains confident in the merits of its position.
IHH said NTK is reviewing the judgment with its legal advisers and evaluating the legal remedies available to it. It has also said that it remains committed to pursuing the matter through appropriate legal channels.
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