Apollo Hospitals May Acquire IHH Healthcare Stake In Kolkata Venture

▴ Apollo Hospitals May Acquire IHH Healthcare Stake In Kolkata Venture
Apollo Hospitals are considering to buy the stake of IHH Healthcare of Kolkata. With this step, Apollo will be strengthening its operation in Bengaluru & Mumbai.

Apollo Hospitals may Acquire IHH Healthcare Stake In Kolkata Venture, Apollo Hospitals’ management has said that the company is interested in buying out stake from its Malaysia-based partner IHH Healthcare Berhad in its hospital in Kolkata — Apollo Gleneagles. The company is looking for bolt-on acquisitions to gain market share and strengthening operations in Bengaluru and Mumbai, apart from inducting more beds into the existing capacity and building new hospitals.

Apollo Gleneagles, Kolkata, is a 50:50 joint venture between Apollo Hospitals and the Parkway Group, which is a part of IHH. Buying out stake from the JV partner also comes at a time when IHH has been strengthening its presence in the country through acquisition of various hospitals, including a major deal it has clinched to buy majority stake in Fortis Healthcare. According to its annual report in 2018, IHH has 33 hospitals, with 4,845 operational beds in India.

“We do have an interest in buying out that JV. We think Kolkata has potential and Apollo’s brand name in that market is very strong,” said Suneeta Reddy, managing director of Apollo Hospitals, during the company’s earnings call for the quarter ended December, 2019. Company sources had earlier said it was awaiting talks to be held with the partner on the share pricing and legal matters.

IHH, which held over 10 per cent stake in Apollo Hospitals, exited from the firm by selling 6 per cent stake in 2016 and the rest in May, 2017, as it had firmed up its plans to expand its presence by acquiring stake in various hospital firms.

The company is expecting a capex of Rs 250-300 crore for the next financial year, while any plans related to the acquisition of shares in Kolkata JV may be out of this plan. The company wants to be a dominant player in certain markets and it will be able to do that with free cashflow it generates. Apollo Hospitals has plans to operationalise more beds in Chennai, Hyderabad, Vizag and Kakinada, among other cities, Reddy said.

Story Source - Business Standard

Tags : #Apollohospitals #Ihhhealthcare #Parkwaygroup

About the Author

Team Medicircle

Related Stories

Loading Please wait...


Trending Now

Traditionally, men were seen as more profit-oriented in business, but now women are proving they are equally capable - Rahul Jain, a top Indian business coach.September 25, 2023
4-Year-Old Girl Gets New lease of life at American Oncology Institute (AOI) Hyderabad with Haploidentical Stem Cell Transplantation September 25, 2023
Silver Oaks International Schools to provide succor to the underprivileged through its ‘Silver Oaks Street Store’ initiative!September 25, 2023
Sri Pullela Gopichand addressing freshers at OMC, emphasised on focussing on goals to achieve success! September 25, 2023
Fall Prevention Experience Centre for the Elderly Inaugurated at LVPEISeptember 25, 2023
Your Retina, Your Responsibility: 5 Tips For Maintaining Eye HealthSeptember 25, 2023
Puducherry Government's Noble Initiative: Empowering Underprivileged Students in Medical EducationSeptember 23, 2023
Title: From Dialysis to Freedom: Aditi's Inspiring kidney Transplant StorySeptember 23, 2023
Narayana Health Achieves Guinness World Record with 3,797 ECGs Conducted in a DaySeptember 23, 2023
Beyond Spoken Words, The Beauty of Sign Language: Celebrating the International Day of Sign LanguageSeptember 23, 2023
Dengue: Symptoms, Warnings & NS1 antigen TestSeptember 23, 2023
EQUIPPP welcomes Mr. Guru R. Sowle as an AdvisorSeptember 23, 2023
Exploring Patient Safety : Empowering patients , Ensuring safetySeptember 22, 2023
Manipal Hospitals Expands Its Footprint: A Game-Changer for Healthcare in Eastern IndiaSeptember 22, 2023
Empowering Palliative Care: Workshop Highlights from Pain Awareness Month 2023September 22, 2023
Studying Alzheimer's 7 Stages on World Alzheimer's DaySeptember 21, 2023
AIIMS Takes the Lead in Transforming Indian Healthcare with 'Ayushman Bhav'September 21, 2023
New study finds stressful jobs may double heart disease risk in womenSeptember 21, 2023
Global Women’s Health Innovation Conference 2023September 21, 2023
Our favourite cheese might just be a delicious way to boost our brainpower: Japanese Study Reveals Surprising FindingsSeptember 20, 2023