IHH Healthcare plans to buy stakes in Global Hospitals
IHH Healthcare will be buying 73.4% stakes in a group of hospitals known as Global Hospitals. These stakes will cost IHH Healthcare around Rs 12.84 billion (S$273 million). This deal will help IHH Healthcare in expanding its presence in the world’s second most populous nation, India.
Global Hospitals are widely acknowledged with the name Ravindranath GE Medical Associates Private Ltd. It operates a chain of 5 hospitals supported by 3 feeder centers. The Global Hospitals currently has up to 1,100 operational beds in Bangalore, Chennai, Hyderabad and Mumbai. These numbers are expected to grow up to 1,900 in coming 5 years.
IHH will also fund Global Hospitals with Rs 2.65 billion. It will be like supporting the capital expenditure requirements of Indian hospital chain and optimize its recent cost of borrowing. IHH mentioned it as being a part of this transaction.
IHH is also planning to bring together all Global Hospitals under the brand “Gleneagles”. Its hospitals include Gleneagles and Mount Elizabeth in Singapore.
Managing Director and CEO of IHH Healthcare, Dr Tan See Leng called it a game-changer for his company in India. Together with IHH’s current hospitals, the acquisition of Global Hospitals will help IHH to become one of the leading hospital groups in India.
IHH is the world’s second largest healthcare group by market capitalization. It has more than 7,000 licensed beds across 40 hospitals worldwide form which 1,800 beds belong to India.
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