RSS FeedApax Partners Invests $104 Million In Apollo Hospitals
Sat, 09/01/2007 - 11:06 — Sahad P V
This is the first investment of global buyout fund Apax Partners in India. Apax has invested $104 million (Rs 426.4 crore) in Chennai-based Apollo Hospitals Enterprise Ltd to pick up about 13.64 per cent in the company. The private equity fund will buy 7,047,119 equity shares of Rs 10 at Rs 605.07 apiece via a preferential allotment. That is at a significant premium since Apollo shares are currently trading at Rs 484.
The deal will not invoke an open offer since it does not exceed the 15 per cent limit. The deal is subject to shareholder and other regulatory approvals. Apollo plans to use the funds to meet its future growth plans of setting up new hospitals and expanding health care facilities.
Apollo is the largest healthcare provider in India with some 41 hospitals under its belt. It also has presence in nursing and hospital management colleges, pharmacies, diagnostic clinics, medical transcription services, third-party administration and telemedicine.
Apax set up shop in India in November last year. Apax India is headed by Neeraj Bharadwaj, who moved to Mumbai from the private equity fund's New York office where he was was in charge of tech and telecom investments.
Apax is currently believed to be in advanced talks to buy a stake in Patni Computer Systems. The fund was also looking at aviation sector closely. Apax, set up 30 years ago by private equity venterans like Alan Patricoff, manages $20 billion globally. Apax is looking for long-term investment and buyout opportunities in sectors like technology, telecom, retail, consumer, media, healthcare and financial services sectors.
Another trend is India beginning to see $100 million plus deals these days. Private equity fund Blackstone announced four big deals this year in this range - Gokaldas ($165 million), Intelenet Global ($109 million), Nagarjuna Construction ($150 million), Ushodaya Enterprises ($275 million). Carlyle invested $650 million and Citigroup $117.5 million in HDFC, to name a few.
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