News Article
IHH given green light on Fortis bid after seven-year regulatory delay
India’s Securities and Exchange Board (SEBI) has removed a seven-year regulatory overhang by allowing Malaysia-based IHH Healthcare Berhad to resume its long-awaited mandatory tender offers for Fortis Healthcare Ltd. and Fortis Malar Hospitals Ltd.
The clearance, granted on October 1, enables IHH’s subsidiary Northern TK Venture Pte. Ltd. to acquire up to 26% in each company, potentially lifting its Fortis stake beyond the current 31.17% and reinforcing Fortis as IHH’s primary growth platform in India.
A court-imposed status-quo order in December 2018 froze the original offers soon after IHH subscribed to a ₹4,000-crore preferential allotment in Fortis. The Supreme Court vacated that order in September 2022, but SEBI’s nod was still required to restart the process. IHH has now begun dispatching the letters of offer, with the tender period scheduled for October 20 – November 4.
Completion would raise IHH’s Fortis holding toward 57%, advancing its goal of majority control, allowing IHH to potentially consolidate additional earnings from one of India’s largest private hospital chains.
Barring unforeseen circumstances, completion is expected in Q4 2025.
