IHH Healthcare Seeks INR 10,930 Cr Compensation from Daiichi Sankyo Over Fortis Stake Dispute

Initially, IHH sought 20 billion yen (approximately $131 million) in damages, following a November 2023 ruling that ordered Daiichi to pay compensation.

IHH Healthcare, Malaysia's largest private healthcare group, is seeking compensation of up to INR 10,930 Cr from Japan's Daiichi Sankyo over a dispute related to its acquisition of Fortis Healthcare in India.

The claim has been filed through Northern TK Venture (NTK), a subsidiary of IHH Healthcare, according to a report by Reuters.

NTK alleges that Daiichi Sankyo caused significant financial losses by obstructing IHH's open offer to acquire a greater stake in Fortis Healthcare in 2018.

Revised Compensation Based on Expert Report

Initially, IHH sought 20 billion yen (approximately $131 million) in damages, following a November 2023 ruling that ordered Daiichi to pay compensation.

However, NTK has now revised its claim based on a report submitted by Osborne Partners, an appointed expert.

On February 6, 2025, NTK submitted this expert report, which analyzed and quantified the damages under three counterfactual scenarios—situations that speculate what might have occurred if the open offers had proceeded as planned.

“Based on the report, the amount of compensation being sought against Daiichi Sankyo ranges from INR 424 crore (at its lowest) to INR 10,930 Cr (at its highest), depending on the parameters applied,” IHH stated.

NTK has also reserved the right to amend its claim, which may include adding other heads of loss and seeking reimbursement for legal fees incurred during the dispute.

Dispute Backstory

The open offer in question was initiated in December 2018, when IHH aimed to acquire an additional 26% stake in Fortis Healthcare.

However, the process was halted after a court ordered a status quo following a contempt plea filed by Daiichi Sankyo against the founders of Fortis.

This legal barrier stalled IHH’s attempt to expand its shareholding in the Indian healthcare provider.

The ongoing legal battle reflects broader tensions stemming from Daiichi Sankyo's longstanding legal disputes with Fortis' former promoters.

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