Investors\' thumbs up for Singh bros\' exit from the board of Fortis

作者:SILVIA 發表日期:2018-02-10 18:42:30

Moneycontrol News

Fortis Healthcare shares gained 9.12 percent and were trading at 139.20 as investors expressed relief over the exit of company’s founding promoters Malvinder Singh and Shivinder Singh from the board.

Malvinder Singh and Shivinder Singh on late Thursday have tendered their resignations and said that they have taken the decision to insulate the company from the promoters' ongoing legal fight that was hurting the performance.

「In the light of the recent High Court judgment, upholding the plea of Daiichi Sankyo to enforce the arbitration award, we believe this is in the interest of propriety and good governance. It is intended to free the organization from any encumbrance whatsoever that may be linked to the promoters,」 Singh brothers said in a letter to the Fortis』 Board of Directors.

Last month, the Delhi High Court had allowed Japanese pharma firm Daiichi Sankyo to collect Rs 3,500 crore ($500 million) award money from the Singh brothers.

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A Singaporean tribunal had adjudged in favour of Daiichi that the Singh brothers had concealed information about Ranbaxy regulatory problems with US FDA, while selling its shares.

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More skeletons have stumbled on Friday, as Bloomberg reported that Singh brothers (as both Malvinder Singh and Shivinder Singh popularly referred as) to have taken USD 78 million out of the firm. The company said that Singh brothers are said to be working to pay back the money.

The Bloomberg report also said auditing firm Deloitte has refused to certify company’s Q2 results.

In another development CNBC-TV18 quoting unnamed sources Manipal Hospitals, backed By TPG is in advanced talks of a proposed merger with Fortis Healthcare.

Fortis spokesperson said to Moneycontrol that he isn』t "aware of such development" and said the company isn』t going to comment on market speculation.