Temasek-backed Manipal Health Enterprises Ltd has acquired an 84% stake in Emami Group’s AMRI Hospitals for around Rs 2,300 crore, a person in the know said. As part of the deal, Manipal will pick up an equity stake as well as assume a portion of AMRI’s debt.
In FY23, AMRI reported revenue of about Rs 1,000 crore, which will enhance Manipal’s revenues for the year, estimated at Rs 4,500 crore, said the person seeking anonymity.
The acquisition, announced by the companies on Wednesday, marks the conclusion of an 18-month negotiation process. During this period, Manipal had moved the Delhi high court (HC) to prevent Emami from selling it to any other entity.
As part of a strategy to divest its non-core assets, Emami will retain some stake in AMRI, the firm said on Wednesday.
“In an endeavour to focus on our core businesses, we have divested our majority stake in AMRI Hospitals. It is a significant step in Emami Group’s stated objective. We will, however, continue as an investor in AMRI Hospitals with a 15% stake. The government of West Bengal will have around 1% stake in AMRI Hospitals,” Aditya Agarwal and Manish Goenka, directors, Emami Group, said in a statement.
Manipal said the acquisition will help expand its presence in eastern India, and address the growing demand for tertiary and quaternary care in the region.
AMRI has hospitals in Dhakuria, Mukundapur, Salt Lake (all in Kolkata) and Bhubaneswar, Odisha. The deal will help Manipal add over 1,200 beds, 800-plus doctors and more than 5,000 healthcare professionals to its network .
“This acquisition is in sync with our objective to further strengthen our presence and serve patients in eastern India —an underserved area when it comes to healthcare,” Ranjan Pai, founder, Manipal Hospitals, said. “With this addition, Manipal Hospitals would now serve patients in its 17th city in Bhubaneswar,” he added.
Following this deal, Manipal will have 33 hospitals across 17 cities, comprising 9,500 beds, making it India’s second-largest hospital chain after Apollo.
The deal was not easy for Manipal. Last year, it placed a bid for Rs 1,800 crore and signed a definitive agreement with Emami. Subsequently, reports emerged that Emami was in talks with Max Healthcare to sell the asset for Rs 2,700 crore. Manipal petitioned the Delhi HC to block the deal, citing its previously signed agreement.
Manipal will continue to be acquisitive and is in early discussions with assets, Dilip Jose, managing director and chief executive, Manipal Hospitals, said, without naming any of the potential hospitals it could buy.
