IHH Gets Sebi Go-Ahead for Fortis Open Offer – 7 Years On
“`html
IHH Healthcare’s Fortis Open Offer: A Long Road to Approval and claims of Obstruction
Table of Contents
Updated October 3, 2025, 5:12 PM EDT
The Approval and the Open offer
On Friday, October 3, 2025, IHH Healthcare, a Malaysian healthcare giant, announced it had received approval from the Securities and Exchange Board of India (Sebi) to proceed with its mandatory open offer. The offer aims to acquire a 26% stake each in Fortis Healthcare and Malar Hospitals.
The initial open offer price for Fortis Healthcare was set at ₹170 (approximately $2.05 USD as of October 3, 2025) per share in 2018. Based on this price, the total deal size is estimated at approximately ₹3,349 crore (approximately $403 million USD as of October 3, 2025).
Delays and Legal Challenges
Despite IHH being declared the triumphant bidder and receiving a preferential allotment of shares in Fortis, the open offer faced meaningful delays due to regulatory hurdles and ongoing court proceedings. These challenges prevented the timely completion of the acquisition.
IHH and NTK (a related entity) allege that Daiichi Sankyo unfairly obstructed the execution of the open offer, resulting in significant financial losses for NTK. According to a joint statement, “While NTK attempted to execute the open offer, Daiichi Sankyo unfairly obstructed the execution and prevented completion of the acquisition, resulting in significant losses to NTK.”
The Allegations Against Daiichi Sankyo
The core of the dispute centers around accusations that Daiichi Sankyo actively interfered with NTK’s attempts to finalize the acquisition. The specific nature of this obstruction remains a point of contention, but IHH and NTK maintain that Daiichi’s actions directly led to the failure of the open offer and subsequent financial damage.
Timeline of Key Events
| Date | Event |
|---|---|
| 2018 | IHH Healthcare declared successful bidder for Fortis Healthcare; open offer price set at ₹170 per share. |
| 2018 – 2025 | Regulatory delays and court proceedings stall the open offer process. |
| October 3, 2025 | Sebi approves IHH Healthcare’s open offer. |
Impact and Implications
The completion of the open offer