By Malvika Gurung
Investing.com — Shares of the healthcare company Fortis Healthcare (NS:) nosedived 17.15% to Rs 257.95 apiece at the time of writing on Thursday, largely underperforming the broader market mood, as the equity benchmark indices and declined 0.5% each.
The stock tumbled on Supreme Court’s refusal to withdraw a halt on the Malaysian healthcare group IHH Healthcare’s (KL:) open offer to acquire an additional 26% stake in Fortis Healthcare.
IHH Healthcare is the largest private healthcare group in Asia. It had acquired a controlling stake of 31% in the Gurugram-based healthcare company in Aug 2018 in a $1.1 billion-worth bidding deal.
However, the open offer to acquire another 26% in the Indian company has been hindered by the Japanese pharmaceutical giant Daiichi Sankyo (TYO:), which challenged the IHH-Fortis deal to recover a Rs 3,600 crore arbitration award against the former promoters of Fortis, Malvinder Singh and Shivinder Singh.
The apex court has now ordered a forensic audit on the share sale of Fortis to IHH and has ordered the Delhi High Court to decide on the open offer.
Fortis Healthcare’s shares crashed the most in two years on Thursday. According to Bloomberg data, a total of 11 analysts are covering the healthcare stock, all recommending a Buy call.
