Metropolis to acquire Hitech Diagnostic to strengthen position in South India
By IANS |
Published on
Mon, Jan 18 2021 14:42 IST |
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New Delhi, Jan 18 : Metropolis Healthcare, a leading diagnostic service provider announced that the Board of Directors has approved the acquisition of Dr. Ganesan s Hitech Diagnostic Centre Pvt. Ltd. (Hitech).
Metropolis will acquire 100 per cent equity of Dr. Ganesan s Hitech Diagnostic Centre Pvt. Ltd. in a combination of cash and stock deal. The entity is a debt free company.
Cash consideration will be Rs 511 crore and Metropolis will issue up to 4,95,000 equity shares of Face Value Rs 2/- each on preferential basis, subject to shareholders approval, to the Promoter Group of Hitech. The Cash consideration will be funded through internal accruals and Debt of up to Rs 300 crore.
Metropolis to buy Hitech Diagnostic
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The board of Metropolis Healthcare Ltd. has approved the acquisition of 100% equity of Hitech Diagnostic Centre Pvt. Ltd. (Hitech) in a cash and stock deal. The cash consideration will be ₹511 crore.
Metropolis said it would issue up to 4,95,000 equity shares of face value ₹2 each on a preferential basis to the promoter group of Hitech. The cash consideration would be funded through internal accruals and up to ₹300 crore in debt.
This acquisition will allow the combined entity to have about 30% market share in Chennai, increase B2C business in focus cities of Chennai and Bengaluru, strengthen position as second largest diagnostics company in India and largest brand in South and West and get access to 31 laboratories and 68 collection centres of Hitech, the statement said.
Healthcare shares rise business-standard.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from business-standard.com Daily Mail and Mail on Sunday newspapers.
Healthcare stocks were trading with gains, with the S&P BSE Healthcare index rising 206.52 points or 0.97% at 21511.12 at 09:48 IST. Among the components of the S&P BSE Healthcare index, Suven Life Sciences Ltd (up 4.95%), Take Solutions Ltd (up 4.23%),Alembic Pharmaceuticals Ltd (up 2.77%),Marksans Pharma Ltd (up 2.75%),Sequent Scientific Ltd (up 2.67%), were the top gainers. Among the other gainers were Divis Laboratories Ltd (up 2.67%), Laurus Labs Ltd (up 2.37%), Healthcare Global Enterprises Ltd (up 2.24%), Cadila Healthcare Ltd (up 2.18%), and Thyrocare Technologies Ltd (up 2.12%). On the other hand, J B Chemicals & Pharmaceuticals Ltd (down 1.23%), Narayana Hrudayalaya Ltd (down 0.93%), and Metropolis Healthcare Ltd (down 0.69%) moved lower.