Malaysia’s healthcare major IHH Healthcare Berhad will be acquiring 73.4 per cent stake in Hyderabad-based Ravindranath GE Medical Associates Private Ltd’s Global Hospitals for Rs 1,284 crore.
As part of the agreement, IHH will use Rs 2.65 crore to fund Global Hospitals’ capex requirements and to optimise its current cost of borrowing, according to a release issued here on Friday. The transaction is expected to be completed in three months.
Founded in 1999, Global Hospital operates five hospitals in Hyderabad, Bengaluru, Chennai and Mumbai with 1,100 operational beds. IHH plans to consolidate all these hospitals under its Gleneagles brand.
Commenting on the deal, Tan See Leng, Managing Director and CEO, IHH, said acquisition of Global Hospitals will make IHH one of the leading hospital groups in India. It will boost IHH’s beds globally to over 8,000 across 45 hospitals in 10 countries.
In India, its portfolio comprises about 1,800 beds and is expected to be increased to 4,000 beds in the next five years.
K Ravindranath, Founder – Chairman of Global Hospitals said: “With IHH’s international experience and our growth potential, we look forward to our enhanced ability to better meet the healthcare needs of Indians as well as international medical travellers.’’
Earlier, in April this year, IHH picked up majority stake in Continental Hospitals Ltd with around Rs 310 crore.