Shares of Fortis Healthcare sank nearly 20% on Thursday and eyed their biggest slide in nearly 15 years, after reports said India’s top court ordered the continuation of a stay on IHH Healthcare’s open offer for the company. The Supreme Court also remanded the issue of the Fortis-IHH deal to the Delhi High Court and directed it to consider a forensic auditor’s appointment, CNBC TV-18 reported.
Reuters was not immediately able to review the order.
IHH had won a bid for a 31% stake in Fortis in 2018, which triggered an open offer for another 26% as per Indian regulations.
The Supreme Court had blocked the open offer based on a plea filed by Japanese drugmaker Daiichi Sankyo, who tried to enforce an arbitration award it won in a Singapore tribunal on a fraud claim against Fortis’ founder brothers Malvinder Singh and Shivinder Singh.
“Proceedings before the Supreme Court have concluded with certain directions and the suo-motu contempt has been disposed-off. We are seeking legal advice to decide our future course of action,” Fortis said in a statement to exchanges on Thursday.
Fortis’ shares dropped by their most since January 2008, with trading volumes at around 21 times the 30-day average as of 0807 GMT
IHH and Daiichi did not immediately respond to Reuters’ requests for comment.