IHH Healthcare Berhad: Material Litigation Update – Tokyo District Court Case

Key Points from the Latest Announcement

• Material Litigation: IHH Healthcare Berhad (“IHH”) has announced a significant update regarding its ongoing litigation in Japan. The case involves its indirect wholly-owned subsidiary, Northern TK Venture Pte Ltd (“NTK”), against Daiichi Sankyo Company, Limited.
• Transaction Background: The litigation is linked to IHH’s acquisition activities regarding Fortis Healthcare Limited (“Fortis”) and Fortis Malar Hospitals Limited (“Malar”), through a combination of:
  • Subscription of 235,294,117 new equity shares in Fortis by NTK
  • Mandatory open offer for up to 197,025,660 Fortis shares (representing 26.10% of expanded voting share capital)
  • Mandatory open offer for up to 4,894,308 Malar shares (representing 26.00% of the voting share capital)
• Petition to Amend Claims: On 12 February 2026, NTK submitted a petition to the Tokyo District Court to further amend its claim against Daiichi Sankyo. The amendment aims to broaden the scope of the injunction, seeking to prevent Daiichi Sankyo from obstructing not only the open offer but also any future acquisition, investment, or corporate exercises related to Fortis and Malar. The petition was delivered to Daiichi Sankyo on 17 February 2026.
• Details of Reliefs Sought:
  • Damages: NTK is seeking damages of INR109,299,359,054 (approx. RM5.71 billion, JPY199.79 billion) for losses from tortious claims (excluding defamation), plus JPY5,000,000 (approx. RM142,860, INR2.73 million) for losses from defamation. Accrued interest on these damages is also being sought.
  • Injunctive Relief: NTK seeks an injunction to prevent Daiichi Sankyo from making defamatory statements to the Securities and Exchange Board of India (SEBI) and other third parties, which could obstruct NTK’s acquisitions and corporate actions regarding Fortis and Malar.
  • Reputational Vindication: NTK requests Daiichi Sankyo to publish a statement on its website and issue a statement to SEBI to vindicate NTK’s reputation.
  • NTK reserves the right to further amend the damage amount in future filings.
• Completion of Open Offers: The open offers for Fortis and Malar were completed on 10 November 2025, which means NTK now has a strategic stake in these companies. The ongoing litigation and potential injunction could impact future investment and corporate activities.
• Future Updates: IHH has committed to making further announcements if there are any material developments in this case.

Implications for Shareholders

• Potential Price Sensitivity: The litigation involves claims of over RM5.71 billion (INR109.3 billion, JPY199.8 billion) in damages. If NTK is successful, this could result in a substantial financial gain and reputational boost for IHH. Conversely, the ongoing legal uncertainty may pose risks to the company’s operations and its ability to execute future deals involving Fortis and Malar.
• Corporate Actions: The amended injunction specifically aims to protect NTK/IHH from interference by Daiichi Sankyo in any future acquisitions or corporate exercises, which is critical for IHH’s expansion strategy in India.
• Reputational Risks: The request for Daiichi Sankyo to publicly vindicate NTK’s reputation highlights the importance of maintaining investor and public confidence, especially in high-profile cross-border transactions.
• Ongoing Legal Uncertainty: Shareholders should be aware that the outcome of the Tokyo District Court proceedings could materially affect IHH’s share value, depending on the court’s final decision and any subsequent actions by Daiichi Sankyo.

What Investors Should Watch For

• Updates from IHH regarding the Tokyo District Court proceedings and any changes in the reliefs sought.
• Any signs of Daiichi Sankyo making public statements or actions that could affect NTK’s operations in India.
• The financial impact of potential damages awarded or denied, as well as any reputational implications arising from the litigation.
• Progress in NTK’s acquisition and investment activities in Fortis and Malar, which could be influenced by the outcome of this case.

Conclusion

This announcement is highly material and price sensitive, as it involves substantial damages, reputational issues, and the protection of IHH’s corporate strategy in India. Investors should monitor further developments closely, as the outcome of the litigation could significantly impact IHH’s share value, financial position, and long-term growth prospects.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own due diligence and consult with financial advisors before making any investment decisions related to IHH Healthcare Berhad or its subsidiaries.

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