Apollo in talks to acquire Chennai hospital

Sources say the deal is in final stage where valuation is to be finalised for the 225-bed hospital

Apollo Hospital Enterprises Ltd (AHEL) is in talks with Chennai-based Lifeline Group of Hospitals to take over Lifeline Multi Speciality Hospital at Perungudi, on the city outskirts.

Sources close to the development said the deal was in the final stage where valuation was to be finalised for the 225-bed hospital, of which around 120-150 beds are operational.

A senior company official from AHEL said the talks were on and it was looking at the possibility while it has not finalised the deal. The value of the deal is not known at present.

The acquisition is expected to give a presence to Chennai-based AHEL in this region, while the divestment is expected to help the Lifeline Group expand in other parts of the city, according to the sources.

However, there are various issues related to the asset, which has to be taken care of before finalising the deal, said another source who confirmed the talks. According to industry sources, another healthcare services major was in talks with the hospital for acquisition, though the deal did not take place.

The Lifeline Hospital spokesperson was not available for comment.

According to the company website, Lifeline Multi Speciality Hospital is a tertiarycare health destination managed by the Lifeline Group of Hospitals in Southeast Chennai, with 225 beds.

AHEL has a network of around 49 hospitals with a total capacity of 8,020 beds as on December 31, 2012. Of this, 36 are owned hospitals, including joint ventures, subsidiaries and associates, with 5,982 beds and 13 managed hospitals with 2,038 beds. The company is planning to add 15 hospitals to the current 36. One of the ways is expansion of beds and facilities or units in existing clusters.