Apollo Hospitals has signed a share purchase agreement with IHH Healthcare (IHH), its JV partner in Apollo Gleneagles Hospital Limited, Kolkata (AGHL), to acquire its existing 50 per cent stake in AGHL for a cash purchase consideration of Rs 410 crore. Apollo also got Board's approval to raise Rs 1500 crore through QIP, partially to fund this deal.
AGHL runs a 750-bed multi-speciality hospital in a 50:50 joint venture between Apollo Hospitals and IHH, which would sell its equity stake to Apollo Hospitals to exit the venture.
Apollo also got tts board's approval to acquire an additional 1% equity stake in Medics International Life Sciences Limited, an unlisted public limited company which runs a 330 bedded multi-speciality hospital in Lucknow.
The board also gave nod for Apollo to raise up to Rs 1,500 crore by way of a further issue of securities on a preferential basis and/or through Qualified Institutional Placement (QIP). The money will be utilised to finance the proposed acquisition of the 50% equity stake held by GDPL in the Kolkata hospital.
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