Apollo Hospitals to buy IHH’s 50% stake in AGHL for Rs 410 cr

The board directors of Chennai-based corporate hospital group Apollo Hospitals Enterprise has approved the proposal for executing a definitive share purchase agreement (SPA) for the acquisition of 50% equity stake held by
IHH Healthcare (IHH), in Apollo Gleneagles Hospital, Kolkata (AGHL),a joint venture in which the group holds a
50% equity stake, for a cash consideration of Rs 410 crore.

AGHL runs a 750 bed multispeciality hospital at Kolkata and is currently a 50:50 JV between Apollo Hospitals and
IHH. Post the transaction closure which is expected by mid December 2020, AGHL would become a 100% subsidiary of Apollo Hospitals.

The board has approved the proposal to raise funds by way of issue of securities through preferential allotment and or qualified institutional placement (QIP) route for Rs 1500 crore,which will be utilised for funding the acquisition.

It has also approved the acquisition of additional 1% equity stake in Medics International Life Sciences( Medics),a JV
for a consideration of Rs 3.98 crore. The company already holds a 50% equity stake in Medicsand proposes to acquire an additional 1% equity stake held by the existing promoters of the company. Consequent to theequity acquisition,Medics will be become a subsidiary to the company.