Fortis Healthcare sells Chennai Hospital to Kauvery Medical for INR 152 Cr
Fortis Healthcare Ltd announced on June 22 that it has finalized definitive agreements to sell its hospital business operations in Vadapalani, Chennai to Sri Kauvery Medical Care (India) Ltd for an amount of INR 152 crore.
The transaction, expected to be completed by the end of July 2023, will be an all-cash deal, subject to certain conditions outlined in the agreement, as mentioned in the company’s filing with the stock exchange.
The hospital facility, situated on leased premises, commenced operations in October 2020 and is conveniently located on Arcot Road. Currently, it houses 110 operational beds, with the potential to expand its capacity to approximately 200 beds.
Fortis Healthcare’s decision to divest aligns with its ongoing strategy to optimize its portfolio and concentrate on strengthening its presence in select geographic clusters where it holds a significant market share.
For Kauvery, the acquisition of the Vadapalani facility is in line with their expansion plans in Chennai, in addition to their existing establishments of over 500 beds at Alwarpet and Radial Road.
Dr. Ashustosh Raghuvanshi, Managing Director and CEO of Fortis Healthcare, stated that the divestment of the Arcot Road hospital business operations reflects the company’s focus on optimizing its hospital assets in key markets and regions.
Saraf and Partners served as legal advisors, and Veda Corporate Advisors provided financial advisory services to Fortis for this transaction. Khaitan & Co and Shardul Amarchand Mangaldas & Co acted as legal advisors for Kauvery.
Dr. S. Chandrakumar, Founder and Executive Chairman of Kauvery Group of Hospitals, expressed that this acquisition will contribute to their expanding healthcare network in Chennai, taking their bed count to over 750.
On the BSE, shares of Fortis Healthcare Ltd closed at Rs 308.85, marking a decrease of Rs 0.40 or 0.13 percent.
About Fortis Healthcare:
Fortis Healthcare Limited, an Indian multinational private hospital chain, is headquartered in India. The origins of Fortis can be traced back to Mohali, Punjab, where the first Fortis hospital was established.
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