Narayana Hrudayalaya signs BTA to acquire Sparsh Hosur Road unit

Narayana Hrudayalaya Limited ("NH"), today i.e., 5th September, 2022 has signed a Business Transfer Agreement with Shiva and Shiva Orthopaedic Hospital Private Limited to acquire its Orthopedic and Trauma Hospital ("Sparsh Hosur Road" unit), situated at Narayana Health City campus, Bommasandra Industrial Area, Bengaluru as a going concern on slump sale basis as defined under the Income tax Act, 1961 for aggregate cash consideration of INR 2 billion. The acquisition is subject to the Conditions precedent and Conditions subsequent as agreed in the Business Transfer Agreement.

Part of the Sparsh Group of hospitals, which has presence across Karnataka, the concerned unit with around 100 operational beds has an operational track record of over a decade offering orthopaedic services. The unit has generated operational revenues of over INR 490 mn in FY 22 and over INR 180 mn for the 4 months period ending 31st July, 2022 respectively as per the unaudited provisional financial statements.

The acquisition will enable NH to foray into the trauma and orthopaedic specialty within the Narayana Health City campus housing our 2 flagship hospitals namely the cardiac sciences focused Narayana Institute of Cardiac Sciences and the multispecialty unit i.e. Mazumdar Shaw Medical Centre.

The acquisition will add orthopaedic specialty and will supplement the other specialties of our Health City operations by supporting Trauma patients for cardiac, renal, pulmonary, neuro and other multi-organ treatments thereby increasing the breadth of our multispecialty program at our flagship campus.

This transaction reinforces NH's focus on multispecialty care especially orthopaedics and associated trauma and neurosciences segments and further augments our core Bangalore region to derive synergies from our existing operations.

The acquisition is not outside the main line of business of the NH.

Source : Equity Bulls

Keywords

NarayanaHrudayalaya BTA Sparsh HosurRoadUnit OrthopaedicSpecialty NarayanaHealthCity