IHH Healthcare Bhd has reiterated that its acquisition of a stake in Fortis Healthcare in 2018 was conducted through a transparent and fully regulated process. The company’s subsidiary, Northern TK Venture Pte Ltd (NTK), acquired the shares via a competitive bidding procedure that was widely publicized at the time, according to a filing with Bursa Malaysia.

IHH stated that the transaction complied with all required regulatory approvals, including those mandated by the Competition Commission of India and the Securities and Exchange Board of India’s takeover regulations. The investment was made through a preferential allotment of newly issued Fortis shares valued at 40 billion Indian rupees, which secured a 31% stake in the healthcare provider. This was accompanied by a mandatory tender offer extended to public shareholders.

The company emphasized that no secondary shares were purchased from Fortis’s former promoters and judgement debtors, Malvinder Mohan Singh and Shivinder Mohan Singh, and no payments were made to them as part of the acquisition.

The clarification comes shortly after the Supreme Court of India, on September 25, dismissed a special leave petition filed by Fortis Healthcare. The petition challenged a Delhi High Court order that had mandated a forensic audit related to the company. The details of the forensic audit have not been disclosed publicly.

IHH’s statement underscores its position that its dealings with Fortis were transparent and complied with all applicable legal and regulatory frameworks, addressing concerns that have surfaced in light of ongoing legal proceedings involving Fortis.