IHH’s external auditors, KPMG PLT have issued a qualified opinion on the group’s FY18 financial statements. The basis for qualified opinion lies in the ongoing investigations on Fortis by the India’s regulators and external legal firm.
To recap, IHH has successfully acquired 31.1% of Fortis in November 2018. Prior to the acquisition, an independent external legal firm submitted an investigation report to Fortis’ board, highlighting certain issues which require Fortis’ reassessment on these claims and transactions with these possible related parties.
PublicInvest Research said should Fortis successfully recover the sum and be liable for claims made over the brandnames, IHH could potentially make a writeback amounting to circa RM100mil (based on its effective stake in Fortis).
However, the legal suit is still at its early stage and is not likely to be finalised anytime soon.
“We maintain our ‘outperform’ call with an unchanged target price of RM6.57,” PublicInvest said.
Limited time offer:
Just RM5 per month.
