Kovai Medical enters into MOU to acquire Idhayam Hospitals Erode Ltd

Kovai Medical Center & Hospital Ltd has announced that the Company has entered into a Memorandum of Understanding (MOU) with Idhayam Hospitals Erode Ltd on February 27, 2007 at Erode, Tamil Nadu.

Idhayam Hospitals Erode Ltd has been incorporated as a Public Limited Company in the year 2001 and its Registered Office is situated at 181 Perundurai Road, Erode, Tamil Nadu. It is proposed to acquire 100% stake of the transferor Company and make it as the Company's wholly owned subsidiary.

It is a closely held Company with a paid-up capital of Rs 372 Lacs. At present the Transferor Company is running a 50 bedded Hospital at Erode which is exclusively for Cardio-thoracic patients.

The agreed purchase consideration is Rs 925 Lacs which involves discharge of unsecured loans, one time settlement with Indian Overseas Bank, Main Branch, Erode, Cost of Medical Equipments and payment to shareholders.

The whole process is expected to be completed within a period of two months.

Source : Equity Bulls

Keywords