The board of Metropolis Healthcare Ltd. has approved the acquisition of 100% equity of Hitech Diagnostic Centre Pvt. Ltd. (Hitech) in a cash and stock deal. The cash consideration will be ₹511 crore.
Metropolis said it would issue up to 4,95,000 equity shares of face value ₹2 each on a preferential basis to the promoter group of Hitech. The cash consideration would be funded through internal accruals and up to ₹300 crore in debt.
This acquisition will allow the combined entity to have about 30% market share in Chennai, increase B2C business in focus cities of Chennai and Bengaluru, strengthen position as second largest diagnostics company in India and largest brand in South and West and get access to 31 laboratories and 68 collection centres of Hitech, the statement said.
“Our objective with the acquisition is to increase our market share in Chennai and Bengaluru and become leaders in some tier-2 towns of South India,” Ameera Shah, MD, Metropolis, said in a release.
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