Despite litigation, IHH says it is focused on key milestones for Fortis

New Delhi: Malaysia-headquartered hospital group IHH Healthcare has asked its largest shareholder, Mitsui, to help broker a conversation with Japanese drugmaker Daiichi Sankyo, even as the two sides remain locked in parallel legal proceedings across Indian and Japanese courts over ₹11,800 crore worth of damages.

"We have asked Mitsui if you know anybody in Daiichi, we are prepared to talk on the side," Prem Kumar Nair, group CEO, IHH said, signalling the company's willingness to explore an out-of-court resolution. "We have asked Mitsui if they can. But we don't know what's going on Daiichi's side and what their strategy is."

Mitsui's position adds another layer of intrigue as it also shares business ties with Daiichi. When asked how they manage that relationship, Nair said, "It's quite common. Mitsui and some parts of Daiichi may be doing business together".

IHH maintained that it is largely a bystander in the fight. The dispute has its roots in Daiichi's fallout with the Singh brothers. "The dispute is between Daiichi and the brothers," he said. "Daiichi is taking action because they can't get what they want from them. We are on the side, watching this whole thing. Because they were causing us issues in India, we decided to file an injunction against them in Tokyo."

Despite the scale of the litigation, IHH insists that it hasn't lost focus with the attention remaining firmly on operations and clearing key internal milestones. "There is no overhang in our minds," said Ashok Pandit, group chief corporate officer, IHH Healthcare. "We look at things in a very rational manner, from a pure business standpoint."

"Our key focus was getting the MTO (mandatory tender offer) through. There are proceedings ongoing in the high court, and we are very comfortable and confident about the legal system, in terms of how it is progressing. We felt damages were caused to us, so we pursued the matter in Japan court-like any normal business would. But if your question is whether this weighs on our minds-none whatsoever," he added.

Both executives said there is no intention of interfering in active court proceedings and will continue to pursue the matter through due legal process. They are, however, prepared for out-of-court negotiations with Daichi.

Proceedings are ongoing at the Delhi HC, and the company said it will abide by the court's direction.

For Fortis, he said that the bigger concern was always the untangling of capital flows back into the company, something that could only happen once the MTO was completed.