IHH Healthcare Shares Rise After Seeking Compensation From Daiichi Sankyo Over Fortis Deal
KUALA LUMPUR, Feb 7 (Bernama) -- IHH Healthcare Bhd’s share price on Bursa Malaysia edged higher in early trading after its unit Northern TK Venture Pte Ltd (NTK) sought compensation from Japan’s Daiichi Sankyo Company Ltd for its stake acquisition in India’s Fortis Healthcare.
At 11.28 am, the counter rose one sen to RM7.26, with 510,800 shares changing hands.
According to a filing with Bursa Malaysia yesterday, NTK has submitted a brief with an expert report seeking compensation between 4.24 billion rupees (RM200 million) and 109.3 billion rupees (RM5.7 billion), depending on the relevant parameters applied.
NTK reserves the right to amend its claim for damages, including adding other losses and legal costs sought from Daiichi Sankyo.
In October 2023, NTK filed a claim against the Japanese drugmaker, alleging that it prevented NTK from proceeding with its open offer to acquire a stake in Fortis Healthcare in 2018. At that time, NTK sought an initial claim of 20 billion Japanese yen (RM653 million) in damages, plus interest at three per cent per annum.
MIDF Amanah Investment Bank Bhd's research arm, MIDF Research noted that the case’s outcome remains uncertain, as it depends on evidence, arguments, and judicial discretion. However, NTK’s increased damage claims suggest confidence in the case’s validity.
“If IHH wins, the group could receive compensation, positively impacting its financial performance and boosting investor confidence. Conversely, if it is unsuccessful, additional legal costs could cause temporary financial strain and negative market perception,” it said in a note today.
MIDF Research also considered the possibility of a partial victory, where IHH wins but receives lower compensation than claimed, offering financial relief without fully covering the damages.
“Either way, we believe the overall situation will not affect IHH’s other operations in the long run,” it said.
Given the ongoing case and IHH’s upcoming financial results, the research house maintained a ‘neutral’ call on IHH, with an unchanged target price of RM7.56.
-- BERNAMA