Fortis Healthcare Restricted introduced on Thursday about signing of a definitive agreements on the market of its hospital enterprise operations at Vadapalani, Chennai to Sri Kauvery Medical Care (India) Restricted for a sale consideration of ₹152 crore. The healthcare firm knowledgeable concerning the all-cash deal in an change communication on Thursday. The divestment deal is anticipated to get consummated by finish of July 2023.
Talking on the Fortis Healthcare divestment plan in regard to its Vadapalani Hospital enterprise, Ashustosh Raghuvanshi, Managing Director & CEO at Fortis Healthcare Restricted stated, “The divestment of Arcot Street hospital enterprise operations is according to our said intent of optimizing our hospital property conserving in thoughts our key markets and areas. This additionally underpins our deal with enhancing our general profitability and margins within the phase, permitting us to re-allocate capital in our key clusters.”
S Chandrakumar, Founder & Government Chairman of Kauvery Group of Hospitals commented, “We’re targeted on our progress plan to turn out to be a number one and trusted well being care supplier in South India. With this acquisition, we could have 750+ beds in Chennai.”
S Manivannan, Founder & Managing Director of Kauvery Group of Hospitals stated, “Kauvery continues to supply best-in-class personalised care, with the best requirements of scientific excellence and moral practices. This acquisition helps us to increase our care to extra areas in Chennai.”
The transaction shall be an all-cash deal and is estimated to be consummated by finish of July 2023, topic to sure circumstances as stipulated within the definitive agreements.
The ability, which is on a leased premises, was commissioned in October 2020 and is positioned on the arterial Arcot Street. It at the moment has 110 operational beds with a possible to scale up-to approx. 200 beds.
The aforesaid divestment is part of the Fortis’ ongoing portfolio rationalization technique as a way to deal with deepening its presence in choose geographic clusters the place it has a sizeable presence.
The acquisition of Vadapalani facility is according to Kauvery’s technique to additional increase its presence in Chennai, along with its present services of 500+ beds at Alwarpet & Radial Street.
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Up to date: 23 Jun 2023, 09:05 AM IST
Supply: Live Mint