India: Apollo buys out IHH stake in joint venture

Apollo Hospitals has bought out IHH Healthcare’s 50% stake in their Indian joint venture in Kolkata for Rp4.1bn (US$55m).

Apollo will now hold a 100% stake in the Apollo Gleneagles Hospital (AGHL).

“Apollo Hospitals, Kolkata is one of the most prized hospital assets operating within the Apollo ecosystem,” said Prathap Reddy, founder chairman of Apollo Hospitals. “We have had a good partnership so far with IHH in creating the Eastern Region’s only internationally accredited healthcare facility which has been recognized as amongst the best Hospitals in the Eastern region and in Kolkata for many years continuously due to its single-minded focus on ensuring outstanding clinical work and medical outcomes.”

Established in 2003, Apollo Gleneagles Hospital Kolkata is a 750 bedded multi-disciplinary tertiary care healthcare facility which is the Eastern Region’s only JCI-accredited healthcare facility.

The hospital is equipped with 14 operating theatres for various surgical disciplines, more than 180 critical care beds, three cardiac catheterisation labs, six endoscopy and ERCP suites, 32 bedded dialysis units, clinical laboratories, a fully functional radiotherapy unit, high-end emergency with dedicated stroke and MI beds.

The deal is expected to close in mid-December.

Shardul Amarchand Mangaldas acted as legal advisors to Apollo while Khaitan & Co acted as legal advisors to lHH on the transaction.