Northern TK Venture Increases Daiichi Sankyo Claim Over Fortis Block

New Delhi, Feb 6 (PTI) Malaysia's IHH Healthcare Berhad on Thursday said its Singaporean arm Northern TK Venture Pte Ltd has increased the claim for damage from Japan's Daiichi Sankyo to up to JPY 199.8 billion (around Rs 10,930 crore) at their ongoing litigation in Tokyo for obstructing completion of open offer in Fortis Healthcare Ltd and its step-down subsidiary, Fortis Malar Hospitals Ltd.

Northern TK Venture Pte Ltd (NTK) is currently engaged in a lawsuit in the Tokyo District Court against Daiichi Sankyo Company Ltd pursuing claims, including a claim for damage related to obstruction of NTK's completion of a tender offer for shares in India's Fortis Healthcare Ltd (FHL) and its step-down subsidiary, Fortis Malar Hospitals Ltd (FMHL).

On February 6, 2025, the board of directors of IHH announced that NTK had submitted an additional brief to the court with an expert report by its appointed expert, Osborne Partners (OP) with an increased claim on the upper limit, the company said in a statement.

"Based on the OP Report, the amount of compensation being sought by NTK against Daiichi Sankyo ranges from Rs 4.24 billion (equivalent to RM 0.2 billion and JPY 7.8 billion) (at its lowest) to Rs 109.3 billion (equivalent to RM 5.7 billion and JPY 199.8 billion) (at its highest), depending on what relevant parameters are applied," it said.

The company further said, "The upper bound of the damages of Rs 109.3 billion (equivalent to RM 5.7 billion and JPY 199.8 billion) is an increase from the initial figure of JPY 20 billion set out in the November 14, 2023 announcement..

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.

The case relates to the Rs 4,000-crore deal clinched by IHH to acquire 31.1 per cent stake in Fortis Healthcare in July 2018 beating rival Manipal-TPG combine in the race. Subsequently, IHH's open offer for an additional 26 per cent stake in Fortis was scheduled to commence on December 18, 2018, and close on January 1, 201,9 entailing a total sum of Rs 3,300 crore.

However, in December 2018, the Supreme Court had ordered status quo with regard to the sale of controlling stakes of Fortis Healthcare to Malaysian IHH Healthcare Berhad by former Ranbaxy promoters and hospital operators -- Malvinder and Shivinder Singh following a plea from Daiichi Sankyo which was seeking to recover Rs 3,500 crore, awarded to it by a Singapore tribunal in its case against the Singh brothers related to the acquisition of erstwhile Ranbaxy.

"In September 2022, the Supreme Court of India issued its final judgment and did not provide for the interim order to continue. Upon becoming aware of NTK's intention to proceed with the tender offer, Daiichi Sankyo wrote to the Securities and Exchange Board of India (SEBI) that it would initiate contempt proceedings if SEBI allowed the tender offer to move forward without permission being obtained from the Delhi High Court (where Daiichi Sankyo's proceedings to recover monies from the Singh brothers are pending)," IHH said.

NTK has been unable to proceed with the tender offer, it added.