HCG acquires 51% stake in Vizag Hospital

Healthcare Global on Friday, June 28, said it has entered into a share purchase agreement with Vizag Hospital for an upfront acquisition of 51% stake in the firm. It will acquire the remaining 49% equity share capital in tranches, it said.

The same will be subject to approval of the company’s board of directors and the various terms and conditions set out in the share purchase agreement and shareholders’ agreement, it said in a statement.

Under the share purchase agreement, the company has agreed to acquire 51% of Vizag Hospital’s equity share, subject to fulfillment of the terms and conditions of the agreement. Under it, the company has also agreed to acquire an aditional 34% of the equity share capital in Vizag Hospital.

“Further, the shareholders’ agreement aso contains provisions in relation to the acquisition of the balance 15% of the equity share capital in Vizag Hospital, in accordance with the terms and conditions contained therin,” the company said.

The acquisition of the 51% equity share capital of Vizag Hospital is estimated to be completed by the second quarter of this fiscal, which would be known as the first closing date.

Within 18 dmonths of the same, the company will acquire 34% more of the quity share capital of the facility.

It will acquire the 51% stake for ₹207.6 crore and the cost of acquisition of the additional 34% stake will be ₹155 crore.

Healthcare Global shares were trading 2.1% higher at ₹379.5 apiece at 1.50 pm on Friday, June 28. The stock has gained 20.55% in the past year. CNBCTV18