Listed oncology-focused player Healthcare Global Enterprises Ltd has acquired a majority stake in Vizag Hospital, which operates Mahatma Gandhi Cancer Hospital and Research Institute, for an enterprise value of Rs 414 crore (around $50 million).
The CVC Capital-backed healthcare player will initially acquire a 51% stake in MGCHRI for Rs 207.6 crore, followed by an additional purchase of 34% for Rs 155 crore over the next 18 months, it said in a company statement.
Further, the cost of acquisition of an additional 15% of the equity share capital of MGCHRI will be based on the valuation principles in accordance with and subject to the terms of the shareholding agreement.
The acquisition, as per the disclosure, would "enable HCG to secure leadership in a micro-market, enhance operational and clinical synergies, unlock capacities, and strengthen our market positioning.
Mid-market investment bank Veda Corporate Advisors advised MG Cancer Hospital on the said transaction.
The hospital launched in 1986, has 196 beds and offers services including diagnostics, advanced treatments such as surgery, chemotherapy, and radiotherapy, and symptom management among others.
It claims that it has catered to over 1.5 lakh patients and conducted over 20,000 complex cancer surgeries and over 400 robotic surgeries.
The hospital had generated Rs 120 crore net sales by end of financial year 2023-24 as against Rs 110 crore a year before.
Meanwhile, founded in 1998, HCG provides healthcare services in India mainly in cancer and infertility verticals under the brand name Milann.
HCG had last struck a deal way back in 2021 when it increased its exposure in Suchirayu Health Care Solutions.
CVC Capital had invested in the firm by the middle of 2020 and doubled down on its investment last year.
Shares of Healthcare Global were trading with gains of 2% at Rs 379 per share during the closing moments of Friday’s trading session on BSE.
