In 2018, IHH had won the bid for FHL
| Photo Credit:
MANOJ KUMAR
IHH Healthcare Berhad’s indirect subsidiary Northern TK Venture Pte (NTK) has filed an application with the Tokyo District Court to increase its damages claim against Daiichi Sankyo Company by about tenfold.
The revised damages sought by NTK have increased from the initial amount of JPY 20 billion to approximately JPY 200 billion (an estimated ₹11,800 crore), a note from the Malaysian healthcare major IHH said, giving details of its announcement made to the stock exchanges in Malaysia and Singapore.
This lawsuit goes back to NTK’s claim for damages at the Tokyo District Court for the “alleged obstruction by Daiichi Sankyo of NTK’s efforts to complete its open offers to acquire shares in Fortis Healthcare Limited (FHL) and its step-down subsidiary, Fortis Malar Hospitals Ltd.”
Open offer
In 2018, IHH had won the bid for FHL. When NTK received preferential allotment of shares by FHL, it triggered a requirement under Indian law to make an open offer to FHL’s public shareholders, IHH said. “It is NTK’s position in the lawsuit that when NTK attempted to execute the open offer… Daiichi Sankyo unfairly obstructed the execution of the open offer and prevented the completion of the acquisition, resulting in significant losses to NTK.”
Daiichi Sankyo’s interest here links to the Singh brothers (Malvinder and Shivinder) who were part of the former promoter-family of Fortis Healthcare, and erstwhile drugmaker Ranbaxy. Daiichi Sankyo had bought Ranbaxy from the Singh brothers, but the deal ran into rough weather for various reasons. The Japanese major has since locked horns with the Singh brothers.
The next hearing at the preparatory proceedings before the Tokyo District Court is scheduled for 11 July 2025.
In November 2023, NTK initially sought, among other reliefs, that Daiichi Sankyo be ordered to pay JPY 20 billion as damages to NTK, together with interest at 3 per cent per annum. In February 2025, NTK submitted a preparatory brief to the Tokyo District Court, along with an expert report prepared by Osborne Partners (an independent expert appointed by NTK) which outlined a detailed assessment of losses suffered by NTK. The OP report includes an analysis and quantification of the damages suffered by NTK, based on three scenarios assuming the open offer had proceeded as originally scheduled, had Daiichi Sankyo not interfered, the note explained.
According to the OP Report, the amount of compensation being sought by NTK against Daiichi Sankyo ranges from ₹4.24 billion to ₹109.3 billion. NTK has now calculated the damages based on these three scenarios in the OP Report, “adding compensation for the losses suffered by NTK as a result of defamation and reputational harm, for a revised total of approximately JPY 200 billion.” This revised figure does not include the interest amount claimed, it added.
“NTK has reserved its right to further amend the amount of damages claimed against Daiichi Sankyo in the future, as stated in its application for amendment of the claim, on the grounds that, among others, the alleged tortious conduct by Daiichi Sankyo is ongoing and continues to cause damage to NTK,” it said,
Published on May 20, 2025