The funds will be used to commission the hospital and incur related expenses, the company said in a stock-exchange disclosure.
Apollo Hospitals Enterprise Ltd said on Thursday it has acquired a 50% stake in Medics International Lifesciences Ltd, which operates a hospital in Lucknow, for Rs 91 crore ($13.2 million).
The funds will be used to commission the hospital and incur related expenses, the company said in a stock-exchange disclosure. The acquisition will enhance Chennai-based Apollo’s presence in Uttar Pradesh, it added.
The 330-bed facility will now be called Apollo Medics Super Speciality Hospital. The hospital is likely to begin operations in the October-December quarter.
Apollo managing director Suneeta Reddy said that the company was on the lookout for acquisitions to strengthen its position in Uttar Pradesh and that the deal is “the right choice” given the background of Medics International’s promoters and their expertise. Medics was founded by cardiologist Sushil Gattani, who is also its chairman.
Apollo, India’s biggest hospital chain, has more than 10,000 beds across 70 hospitals in the country and overseas.
In a recent interview with VCCircle, Apollo joint managing director Sangita Reddy had said the company was open to evaluating opportunities for bolt-on acquisitions.
Apollo hasn’t struck any takeover deals in recent years and has also stayed away from the bidding for Fortis Healthcare Ltd, the No.2 hospital chain. Its last reported acquisitions were in 2015 when it bought the surgical centres unit of Nova Medical Centers Pvt Ltd and a 51% stake in a Guwahati hospital.
The company’s consolidated revenue from operations rose to Rs 8,243.47 crore for 2017-18 from Rs 7,114.39 crore the previous year.
Mid-market investment bank Advay Capital Advisors was the financial adviser to Medics International on this deal.