Leading private sector hospital chain Narayana Hrudayalaya Ltd on Monday said it has signed an agreement with Shiva and Shiva Orthopaedic Hospital Private Ltd to acquire its orthopaedic and trauma hospital situated at Narayana Health City campus for Rs 200 crore.
In a regulatory filing on September 5, the Bengaluru-based company said, "We hereby inform that Narayana Hrudayalaya Ltd today September 2022 has signed a Business Transfer Agreement with Shiva and Shiva Orthopaedic Hospital Private Ltd to acquire its Orthopedic and Trauma Hospital (“Sparsh Hosur Road” unit), situated at Narayana Health City campus, Bommasandra Industrial Area, Bengaluru as a going concern on slump sale basis as defined under the Income-tax Act, 1961 for aggregate cash consideration of INR 2 billion."
Part of the Sparsh Group of hospitals, which has a presence across Karnataka, the concerned unit, with around 100 operational beds, has a decade-long operational track record offering orthopaedic services, it said in a statement.
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The unit has generated operating revenues of over Rs 49 crore in FY22 and over Rs 18 crore for the four months period ending July 31, 2022, it said.
Further, the company said the acquisition will enable Narayana Hrudayalaya to foray into the trauma and orthopaedic speciality within the Narayana Health City campus, housing two flagship hospitals, namely the cardiac sciences-focused Narayana Institute of Cardiac Sciences and the multispecialty unit i.e. Mazumdar Shaw Medical Centre.
The acquisition will add the orthopaedic speciality and will supplement the other specialities of its Health City operations by supporting trauma patients for cardiac, renal, pulmonary, neuro and other multi-organ treatments, thereby increasing the breadth of our multispecialty program at our flagship campus, it added.
This transaction reinforces Narayana Hrudayalaya's focus on multispecialty care, especially orthopaedics and associated trauma and neurosciences segments and further augments its core Bengaluru region to derive synergies from our existing operations.
The acquisition is subject to the completion of conditions precedent and subsequent as agreed in the business transfer agreement, which includes the transfer of various licences or authorisations in the name of Narayana Hrudayalaya. The acquisition is expected to be completed on or before December 31, 2022.
