A warrant of prohibitory injunction filed last month by an American investor, seeking to block the transfer of a number of Maltese hospitals by Vitals Global Healthcare in favour of Steward Healthcare, was withdrawn on Thursday.
When the first hearing regarding the warrant was set to commence, lawyer Peter Fenech informed the court, presided over by judge Joseph R. Micallef, that the warrant had been withdrawn.
The Times of Malta was informed that the withdrawal followed a settlement between the parties, whereby Bluestone Investments Ltd agreed to transfer to Ashok Rattehalli, the applicant, his due shares in Vitals Global Healthcare.
Back in 2014, Dr Rattehalli had formed part of the group of technical, administrative and financial consultants who proposed that the management and administration of three local hospitals be entrusted in the hands of Bluestone Investments Ltd, majority shareholder of Vitals Global Healthcare.
On November 30, 2015, VGH entered into a concession agreement for the provision of healthcare and ancillary services at St Luke’s, Karin Grech and the Gozo General Hospital.
As a member of the operating management team, also serving on the medical board, Dr Rattehalli was entitled to 5% of the shares in Vitals Global Healthcare, but this offer for the purchase or transfer of the shares had so far never materialised.
Upon learning that the company was going to be sold to third parties, Mr Rattehalli had, last December, filed a provisional warrant of prohibitory injunction claiming that his rights would be prejudiced by the transfer, only to withdraw the warrant in a gesture of ‘good faith’ after being promised that his rights would be honoured.
Read: VGH investor again tries to stop hospitals transfer to Steward Healthcare
Yet, when no ‘substantive guarantee’ was forthcoming, Dr Rattehalli had filed a second warrant in January, claiming that the projected transfer by Vitals would prejudice his interests, only to once again withdraw the warrant after an agreement for the transfer of his share entitlement in Vitals Global Healthcare was reportedly concluded between the parties.