Fortis Healthcare Ltd on Thursday, June 22, said it has signed definitive agreements for the sale of its hospital business operations at Vadapalani, Chennai to Sri Kauvery Medical Care (India) Ltd for Rs 152 crore.
The transaction will be an all-cash deal and is estimated to be completed by the end of July 2023, subject to certain conditions as stipulated in the agreement, the company said in an exchange filing.
The facility, which is on leased premises, was commissioned in October 2020 and is located on the arterial Arcot Road. It currently has 110 operational beds with the potential to scale up to approximately 200 beds.
The divestment is a part of Fortis' ongoing portfolio rationalisation strategy in order to focus on deepening its presence in select geographic clusters where it has a sizeable presence.
The acquisition of the Vadapalani facility is in line with Kauvery's strategy to further expand its presence in Chennai, in addition to its existing facilities of 500-plus beds at Alwarpet and Radial Road.
Dr Ashustosh Raghuvanshi, Managing Director and CEO of Fortis Healthcare, said the divestment of the Arcot Road hospital business operations is in line with the company's stated intent of optimising its hospital assets keeping in mind its key markets and regions.
For Fortis, Saraf and Partners acted as legal advisors and Veda Corporate Advisors acted as financial advisors for this transaction. For Kauvery, Khaitan & Co and Shardul Amarchand Mangaldas & Co acted as legal advisors for this transaction.
Dr S. Chandrakumar, Founder and Executive Chairman of Kauvery Group of Hospitals, said with this acquisition, the company will have 750-plus beds in Chennai.
Shares of Fortis Healthcare Ltd ended at Rs 308.85, down by Rs 0.40, or 0.13 percent on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: Jun 22, 2023 5:19 PM IST
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