Malaysia’s IHH Healthcare, which owns Parkway Hospital Group, is close to finalising a Rs 600 crore deal to acquire Vikram Hospital, the Bengaluru-based multiple speciality hospital chain, which will help it to strengthen its presence in India, people familiar with the development said.
Parkway has a presence in Bengaluru, with its acquisitionof BGS Hospital last year and Vikram would give it access to a hospital in the central business district. The acquisition, expected to close by July, would also give an exit to its Private equity investor Multiples Alternate Asset Management, a fund led by Renuka Ramnath.
Ramnath did not reply to an email seeking comments on Tuesday.
“IHH is always looking at various value accretive opportunities to add to its portfolio. However, it is not appropriate for us to comment on specific transactions and we will update the market if there are any material developments,” IHH said in a statement.
The super speciality hospital providing cardiology, neurology, orthopaedic and trauma care services was founded in 2009 and has 225 beds. Multiples’ exit from the hospital comes at a time when PE activity in the regional hospital sector has been picking up steam. The few exits in the space have been via the strategic acquisition route.
Vikram Hospital reported losses of Rs 10.76 crore on a revenue of Rs 107.9 crore for the fiscal 2015-16, according to a note on its website. The hospital also did a one time settlement with the Union Bank of India, to whom it owed Rs 73.8 crores, issuing shares and non-convertible debentures of the same value.
Mint first reported on May 30 that Multiples had hired investment bank Moelis and Co. to facilitate the sale of Vikram Hospital. The report added that the private equity firm was looking to exit three-four ventures this year, with Vikram Hospital being the first of its portfolio companies where the formal process of an exit had begun.
Multiples had acquired around 65% stake in Vikram Hospital in 2013 from ICICI Venture Funds Management for between Rs 180-190 crore. The firm has begun returning capital to its limited partners (LPs) for its maiden fund of $400 million raised in 2010.
In October last year it sold 10% stake in e-commerce logistics provider Delhivery to Tiger Global. Currently, Multiples manages close to $1.1 billion in private equity funds.
Source : Business-Standard, June, 2016