Integrated Healthcare Holdings pulls out of Fortis deal

 22-Jun-17, ET Healthworld 

Integrated Healthcare Holdings (IHH) of Malaysia has decided to abandon its hot pursuit of taking over the healthcare assets of siblings Malvinder and Shivinder Singh of Religare.

Image: ET Healthworld

Days before a formal announcement was expected, IHH, the world's second-largest healthcare group which operates the Parkway Pantai chain of hospitals, has pulled out of its exclusive negotiations with the Singh brothers to acquire a controlling interest in Fortis Healthcare and Fortis Malar which will also house SRL Diagnostics following a group restructuring exercise.

The Singh brothers are engaged in a fierce legal battle against Japanese pharma major Daichi Sankyo to recover INR3,500 crore (USD540 mn) as part of an arbitration award against the Singhs by a Singapore tribunal.

"IHH is still not certain that shares of Fortis can be delivered to them cleanly in light of the ongoing litigation. The risks seems very high," said an official aware of the matter.

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