Hotline: 1800 102 2007
Hotline: 1800 102 2007
Apr, 23 2018

Metropolis eyes SRL Diagnostics in spinoff deal

At least five bidders are in the fray to acquire Fortis Healthcare, which holds a 56% stake in SRL.

Metropolis eyes SRL Diagnostics in spinoff deal

Metropolis Healthcare, one of India’s largest pathology labs networks, have approached Fortis bidders via bankers to acquire SRL Diagnostics through a spinoff deal.

Metropolis was exploring a consolidation deal which could make it the largest diagnostics chain in Asia’s third-largest economy, sources said. Investment bank JM Financial has explored a proposal to help Metropolis acquire SRL — valued at Rs 3,600 crore—in recent weeks, they added.

At least five bidders are in the fray to acquire Fortis Healthcare, which holds a 56% stake in SRL. Among them, only Manipal Health Enterprises, backed by TPG, has explicitly stated that it intends to keep the diagnostics business.

“Bankers approach us with proposals, but we are not pursuing it seriously at this point,” Ameera Shah, Metropolis CEO and MD, said on the phone. Metropolis has private equity giant Carlyle Group as a significant minority shareholder, while founder Sushil Shah’s family has majority ownership.

Multiple suitors, including private equity firms Apax Partners and Everstone Capital, were in active discussions when The Fortis board approved a takeover proposal from Manipal in March this year. The arrival of rival offers has renewed deal-making discussions.

Fortis board has decided to engage with binding offers from Manipal and a joint bid from the family offices of New Delhi-based business groups, Munjals, and Burmans. It will be interesting to watch whether Munjals and Burmans, who are said to be frontrunners for Fortis acquisition, would retain SRL.

IHH and Radiant Life Care, which have made non-binding offers, are unlikely to keep the diagnostics network that has 376 labs and more than 6,300 collection points across the country. India’s notoriously fragmented diagnostics market is showing early signs of consolidation. SRL, Dr Lal PathLabs, Metropolis, and Thyrocare are the leading players in the sector.

sharebtn
Comment
user
email
mobile
address
star
Related opportunities
  • Department & Convenience Stores
    Launched in 2018, Shri Chyawan Ayurveda Health Care Pvt. Ltd...
    Locations looking for expansion Haryana
    Establishment year 2018
    Franchising Launch Date 2020
    Investment size Rs. 5lac - 10lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Faridabad Haryana
  • Quick Service Restaurants
      Investment Brand Fee Space Staff Exp. Monthly Sales Pro..
    Locations looking for expansion Madhya Pradesh
    Establishment year 2014
    Franchising Launch Date 2015
    Investment size Rs. 5lac - 10lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Indore Madhya Pradesh
  • Quick Service Restaurants
    About Us: SHANGZ don't just make Asian Food, we try to..
    Locations looking for expansion Chandigarh
    Establishment year 2018
    Franchising Launch Date 2019
    Investment size Rs. 10lac - 20lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chandigarh Chandigarh
  • Fine Dine Restaurants
    About Us: Karim’s, a division of Karim’s Hotels Private Limited, is..
    Locations looking for expansion Delhi
    Establishment year 1950
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities