Apollo Hospitals’ Strategic Acquisition of Apollo Health and Lifestyle

On July 06, 2024, Apollo Hospitals announced via a stock exchange filing that it plans to acquire 35,12,107 equity shares of ₹10 each at ₹294 per share (including a premium of ₹284 per share), totalling ₹103 crore through a rights issue subscription of its subsidiary Apollo Health and Lifestyle Limited (AHLL).

The acquisition of AHLL as a subsidiary is considered a related party transaction. However, apart from the shares held by the Company in AHLL, Apollo Hospitals’s promoters or promoter group are not interested in AHLL. This transaction is conducted at arm’s length, meaning it is done on fair and competitive terms.

Objective of Acquisition

The investment in Apollo Health and Lifestyle Limited will primarily support various objectives, including enhancing business operations, strengthening working capital, and facilitating expansion. This acquisition aims to complement the listed entity’s core business activities.

Acquisition Details

• Indicative time period for completion of the acquisition: July 08 2024
• Consideration: The acquisition involves cash consideration.
• Shareholding/Control: AHLL’s shareholding and control will not change post-acquisition. It will remain a subsidiary of the Company.

About Apollo Health and Lifestyle Limited

Apollo Health and Lifestyle Limited was incorporated on November 10, 2000, under the Companies Act, 1956. It specialises in manufacturing a variety of air conditioners, commercial refrigeration equipment, cooling appliances, and related products. AHLL focuses on delivering extensive and high-quality healthcare services through owned and franchised clinics and hospitals throughout India. Its main activities involve operating speciality hospitals, maternity hospitals, clinics, diagnostic centres, diabetes clinics, dental clinics, and dialysis centres.

About Apollo Hospitals

Apollo Hospitals was founded in 1983 by Dr. Prathap C Reddy, a key figure in transforming healthcare in India. It was the first corporate hospital in the country, leading the way in private healthcare. Today, Apollo Hospitals is a leading healthcare provider in Asia, offering a wide range of services, including hospitals, pharmacies, primary care and diagnostic clinics, and various retail health models. Over time, the group has received numerous global accolades for healthcare standards, biotechnological advancements, and pioneering medical treatments.

On July 8, 2024, Apollo Hospitals’s share price opened at ₹6,380.00, touching the day’s high of ₹6,387.95 as of 12:05 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.