Apollo Hospitals today said it has acquired 50 per cent stake in a Lucknow-based 330-bed super speciality hospital project for a consideration of Rs 91 crore.
The acquisition of 50 per cent stake in Medics Super Speciality Hospital would help the Chennai-based healthcare major to consolidate its position in Uttar Pradesh, Apollo Hospitals Enterprise said in a regulatory filing.
The project, which is spread over a 3.5 lakh square feet area in Lucknow, is expected to be commissioned by the third quarter of the current financial year, it added.
"The acquisition of the 50 per cent equity stake is through a primary issuance of shares by Medics for a consideration of Rs 91 crore which would be utilised towards hospital commissioning and related expenses," Apollo Hospitals said.
Apollo Hospitals Managing Director Suneeta Reddy said, "In order to strengthen Apollo's position in the UP region, Apollo was on the lookout for acquisitions to grow inorganically and considers the acquisition as the right choice given the promoters background and expertise in healthcare services in Lucknow."
The healthcare provider expects to leverage its proven track record of performance and operational capabilities to drive growth and profitability at Medics and create long term value for the shareholders, she added.
Medics Super Speciality Hospital's founder and chairman Sushil Gattani said there is a potential to develop Lucknow as a cost-effective medical travel destination.
Lucknow already attracts around 5-8 per cent of its patients from Nepal, he added.
Shares of Apollo Hospitals today ended 3.11 per cent down at Rs 1,044.55 on the BSE.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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