Latest news with #FHL
New Straits Times
20-05-2025
- Business
- New Straits Times
IHH Healthcare unit raises damages sought from Daiichi Sankyo to RM5.7bil
KUALA LUMPUR: IHH Healthcare Bhd's indirect subsidiary, Northern TK Venture Pte Ltd (NTK), has increased the damages it is seeking from Daiichi Sankyo Co Ltd to about JPY200 billion (RM5.7 billion). This marks a tenfold jump from its initial claim of JPY20 billion (RM634 million), the group said in a statement today. In a filing with the Tokyo District Court, NTK applied to amend its ongoing lawsuit, citing a more comprehensive quantification of damages based on expert analysis. The revised claim includes compensation for defamation and reputational harm, and is backed by a report prepared by Osborne Partners, an independent expert appointed by NTK. The lawsuit stems from NTK's claim that Daiichi Sankyo obstructed its attempts to complete an open offer to acquire shares in India-based Fortis Healthcare Ltd (FHL) and its step-down subsidiary, Fortis Malar Hospitals Ltd. NTK said that Daiichi Sankyo's interference caused significant financial losses by preventing the completion of the acquisition and freezing NTK's non-interest-bearing deposit of about JPY60.2 billion, which had been set aside to fund the open offer. "The revised claim now reflects damages under three counterfactual scenarios in which the open offer was completed as scheduled, in the absence of interference from Daiichi Sankyo. "The estimated damages range from INR4.24 billion (RM200 million) to INR109.3 billion (RM5.7 billion), depending on the scenario. The legal dispute dates back to 2018, when NTK was executing a mandatory open offer after acquiring a 31.1 per cent stake in FHL. NTK alleges that Daiichi Sankyo obtained an interim status quo order from India's Supreme Court without notice, halting the offer. Though the court later lifted the order, the open offer could not proceed due to continuing legal threats from Daiichi Sankyo. IHH and NTK maintain that they have no links to the Singh brothers, against whom Daiichi Sankyo has been pursuing separate legal action related to the Ranbaxy acquisition. NTK said it reserves the right to further revise the damages claimed, noting that the alleged interference by Daiichi Sankyo is ongoing. The next hearing in the Tokyo District Court's preparatory proceedings, which are closed to the public, is scheduled for July 11. NTK is the investment vehicle through which IHH holds its interest in FHL and the group considers India a core market alongside Malaysia, Singapore and Türkiye. IHH said it remains committed to expanding its healthcare footprint in India and hopes the legal issues will be resolved swiftly so that it can continue serving the local community.
Business Recorder
19-05-2025
- Business
- Business Recorder
‘Violation of Petroleum Rules': PMO seeks detailed report from Petroleum Division
ISLAMABAD: Prime Minister's Office has sought a detailed report from Petroleum Division regarding alleged violation of Petroleum Rules by Frontier Holdings Limited (FHL) and SPUD Energy PTY Limited. According to documents, PM Office in a letter dated May 05, 2025 carrying subject 'Urgent Action Required Violation of Petroleum Rules by Frontier Holdings Limited (FHL) and SPUD Energy PTY Limited' asked the Petroleum Division to furnish a detailed report. And, following the PM Office took notice of the alleged violation of the Pakistan Petroleum Rules, 2001, in the disposition of controlling shares of two petroleum exploration firms—SPUD Energy Pty Ltd and Frontier Holdings Limited (FHL), the Director General Petroleum Concession swung into action and advised the Chief Executive Officer of FHL to submit a report in the matter to proceed further in accordance with applicable rules. Earlier, Transparency International Pakistan (TIP) requested the Prime Minister's Office to initiate an investigation into the alleged violation of the Pakistan Petroleum Rules, 2001, in the disposition of controlling shares of two petroleum exploration firms—SPUD Energy Pty Ltd and Frontier Holdings Limited (FHL). In a formal letter dated May 2, 2025, TIP raised concerns over the alleged transfer of controlling shares in the two companies without prior government approval, a move that if confirmed, would violate Rule 69(d) of the Pakistan Petroleum (Exploration and Production) Rules, 2001. According to Rule 69(d), companies must obtain prior consent from the government before proceeding with any disposition of controlling interests. The rule states: 'Without the prior consent of the Government, there shall be no disposition of the share capital of the holder or its parent company in consequence of which any person who, prior to that disposition, had effective control of the holder or its parent company ceases to have such effective control.' TIP stated that SPUD and FHL are linked to Jura Energy Corporation, which recently saw a controlling interest shift from Phoenix Holdings Ltd to IDL Investments Ltd. It alleged that this transaction occurred secretly, without notifying or securing consent from the Petroleum Division. The watchdog also cited past regulatory violations by SPUD and FHL, including a government-ordered recovery of Rs1.3 billion in unpaid royalties. TIP warned that failure to act on this latest development could set a dangerous precedent, undermine regulatory authority, and compromise Pakistan's energy sovereignty. Reportedly in 2023, Prime Minister Shehbaz Sharif directed the petroleum division to recover an outstanding royalty amount of Rs 1.13 billion from two oil and gas firms, Spud Energy and Frontier Holdings Limited (FHL). The PM's office, in a letter dated January 20, 2023, to the secretary petroleum division, said that 'it has been desired that the petroleum division shall ensure recovery of the outstanding amount within two weeks and submit a compliance report.' In the letter which was addressed to the managing director, Sui Southern Gas Company Limited (SSGC), Fazal Abbas, the petroleum division's financial analyst, advised the company to stop the payments of Spud Energy and FHL. He said the outstanding royalty should be deposited in the government treasury. Copyright Business Recorder, 2025
Telegraph
14-03-2025
- Business
- Telegraph
Desperate holiday-let owners foot £12k bills to avoid tax raid
Desperate holiday let owners are incurring five-figure penalties to pay off their mortgages ahead of an upcoming tax raid. Furnished holiday lets benefit from generous tax breaks that regular lettings do not. However, from April 6, this special tax treatment will be abolished under plans announced by the previous government. With less than a month to go until the regime ends, property owners are racing to make the most of the tax breaks while they can – and deciding what to do with their investment after the cut-off to avoid falling into a hefty tax trap. To qualify as a 'furnished holiday let' (FHL) for tax purposes, a property must be available for hire for 210 days and let for 105 days or more within each tax year. Lettings to families and friends at zero or reduced rates are not counted. It must also be fully furnished and not let out to the same person for more than 31 consecutive days or more than 155 days per year. FHLs are currently treated as trading businesses, meaning owners can take advantage of various capital gains tax reliefs when selling or giving away the property. They can also deduct mortgage interest payments from rental income at their marginal rate to reduce profits and, therefore, their tax bill. But from April, sellers of FHLs will need to pay capital gains tax, interest relief will be restricted to a flat rate of 20pc (in line with other let properties), and profits will no longer count when calculating relief on pension contributions. Zena Hanks, partner at chartered accountancy firm Saffery, said some of her clients who own FHLs are considering repaying their mortgages early, even though this can mean incurring an early repayment charge – usually between 1pc and 5pc of the outstanding debt. One client, an additional-rate taxpayer, decided to pay £8,000 in early mortgage repayment charges on their furnished holiday let properties in Devon. The client had worked out that the loss of mortgage interest relief from April would cost them considerably more in the long run. Analysis by Saffery shows that a FHL owner in the higher-rate tax bracket with a £400,000 mortgage at 5pc interest could expect to be hit with early repayment charges of around £12,000 to settle the debt. However, the reduction of mortgage interest relief from 40pc to 20pc would slash their savings by £4,000 per year, meaning paying off the mortgage would make sense in the longer term – even ignoring the cost of the mortgage itself. Ms Hanks said: 'These charges can very easily run into five figures, even for standard-sized mortgages. Despite this, early repayment may well still be the cost-effective option for FHL owners when compared to the lost income tax relief in just the first year of the changes, were they to stick with their monthly repayments. 'For anyone considering repaying their mortgages early, the first question is of course where they will be sourcing the capital required to do so. We are seeing FHL owners taking various approaches – some are selling one or more of their properties. 'However, another change to the capital gains tax rules means that FHL disposals can no longer qualify for 'business asset disposal relief' from April this year, so any gain on a property sale that exchanges on or after April 6 will be taxed at the 24pc rate. 'In the run up to April 5, any such gain may attract a more favourable rate of 10pc, which is why we are seeing an increase in FHL properties being sold.' If you were already planning to dispose of your holiday let, you may well benefit from doing so before the changes come into force. Sean McCann, chartered financial planner at NFU Mutual, said: 'If you are selling and buying a new furnished holiday let or other qualifying trading asset, you can 'roll over' all or part of the gain, which allows you to defer all or part of the capital gains tax payable. 'Or if you are gifting the property, you and the person you are giving it to can claim 'gift hold over relief'. This means there is no capital gains tax at the time of the gift, and any capital gains tax is 'held over' until the new owner disposes of it. 'If you're planning on ceasing your furnished holiday let business, if you do so before April 6, you may be able to claim business asset disposal relief – which allows you to have £1m of gains during your lifetime taxed at 10pc.' The impact FHL income can have on tax-free pension contributions is another benefit that is 'often overlooked', he added. In the 2024-25 tax year, all taxpayers are entitled to pay up to £60,000 or 100pc of their income (whichever is lower) into their pension tax-free. FHL profits still count as income until April 5, giving FHL owners a window to make higher tax-free contributions. One of Mr McCann's clients is putting 'as much as possible' into his pension before the rules change next month. 'Profits from furnished holiday lets are currently treated as earned income and can be used to make pension contributions. This means that for every £80 paid in, HMRC will add another £20. 'If you pay 40pc income tax, you can claim up to an additional £20 via your tax return. If you haven't been taking advantage of this benefit, you can go back up to three years and pay a larger sum to take maximum advantage before this benefit closes on 6 April.' If you are considering renovating your holiday let, doing so in the next month would allow you to take advantage of the current tax treatment. Mr McCann added: 'Currently, if you spend money on improvements such as putting in a new kitchen, bathroom or central heating, you can claim 100pc tax relief, within limits. 'From April, you will get tax relief on repairs to the property, replacing furniture or washing machines, but not for capital improvements. So, if you are planning to put in a new kitchen or extend the property, it may make sense to do this before April 6.'
