Dr Lal PathLabs to buy 70% stake in a new firm to strengthen presence in MP

Diagnostic chain Dr Lal PathLabs Friday said its board has approved the acquisition of 70 per cent stake in a new company to be incorporated by Vinita Kothari and Sushila Dalal for a cash consideration not exceeding Rs 50 crore.

The company's wholly-owned subsidiary, Pathlabs Unifiers Pvt Ltd has decided to acquire 70 per cent of businesses of Central Lab, Indore and M/s 'Vinita Kothari', a proprietorship concern of Kothari, through a new company to be incorporated for strengthening its business presence in Madhya Pradesh, Dr Lal PathLabs said in a filing to BSE.

Dr Lal PathLabs' board has approved the signing a binding term sheet for the acquisition.

Central Lab, Indore, is engaged in pathology business, and is a partnership concern having Kothari and Dalal as its partners, it added.

The indicative time period for completion of the acquisition is within three months, Dr Lal PathLabs said.

The new company will be engaged in healthcare/diagnostic services in Madhya Pradesh and adjoining areas and shall house the business of Central Lab, Indore, and proprietorship concern M/s Vinita Kothari, it added.

Shares of Dr Lal PathLabs were trading at Rs 1,080 per scrip on BSE, down 0.47 per cent from their previous close.