Fortis Healthcare to acquire 350 bedded Hospital in Manesar Gurugram, from Medeor Hospitals Limited

Fortis Healthcare Limited ("Company"), today, announced that it has signed definitive agreements with the VPS Group for the acquisition of its Medeor Hospital in Manesar, Gurugram, Haryana, ("Medeor Hospital") for an overall purchase consideration of INR 225 Crore. The hospital has a potential bed capacity of 350 beds and can be operationalized in a phased manner in approx. 9 months. The transaction entails the purchase of land, building and movable assets of Medeor Hospital in Manesar, Gurugram, owned by Medeor Hospitals Limited and is expected to close by end of July 2023, subject to the completion of certain conditions precedent as stipulated in the definitive agreements. The transaction will be funded through a mix of debt and internal accruals.

The acquisition fits well with the Company's strategic approach of expanding its presence in focus geographic clusters, including Delhi NCR. The acquisition will enable the Company to deliver quality healthcare services to patients in the upcoming areas of New Gurgaon, Dwarka Expressway, IMT Manesar and National Highway 48. The hospital is easily accessible from these areas and can additionally benefit patients from across Rewari, Mahendargarh, Bhiwadi, Pataudi, Farukh Nagar and other areas in the vicinity.

Dr Ashutosh Raghuvanshi, MD & CEO of the Company, said, "We have been evaluating various acquisition opportunities to expand our presence in our existing markets and to enable us to leverage the benefits of scale and synergies. We believe this is a good strategic fit as we already have a significant presence in Gurugram with our flagship facility, Fortis Memorial Research Institute (FMRI). This acquisition will make us the second largest healthcare services provider in Gurugram with over 850 beds, including our ongoing brownfield bed additions in FMRI. We endeavor to offer the entire spectrum of medical specialties at our new facility, ably supported by our experienced team of clinicians and deliver exceptional clinical care."

Saraf and Partners, Law Offices, acted as legal advisors for this transaction and MediConsult Capital acted as transaction advisors for this transaction.

Shares of Fortis Healthcare Limited was last trading in BSE at Rs. 267.30 as compared to the previous close of Rs. 264.50. The total number of shares traded during the day was 29271 in over 1130 trades.

The stock hit an intraday high of Rs. 267.95 and intraday low of 263.80. The net turnover during the day was Rs. 7812388.00.

Source : Equity Bulls

Keywords

FortisHealthcare INE061F01013 Acquisition MedeorHospital Manesar Gurugram