Pending approvals delay IHH’s open offer for Fortis Healthcare

IHH Healthcare’s open offer to acquire an additional 26% in Fortis Healthcare has been delayed pending regulatory approvals including an investigation by the market regulator into alleged fund diversion by the promoters of the Indian hospital chain. The Malaysian company’s open offer was supposed to have started on September 7 and end on September 27. However, there’s been little change in the Fortis shareholding patterns between June and September. IHH is yet to get approvals from the Delhi High Court, Sebi, and the Competition Commission of India, among others, for its acquisition of a controlling stake in Fortis. However, an official closely associated with the company said delays in open offers are common in mergers and acquisitions in India and it is nothing unusual in the case of Fortis.

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