Diagnostic firm Medinova sells Bangalore facility to Mallya Hospital

Hyderabad-based Medinova Diagnostic Services Ltd has sold its Bangalore facility to Mallya Hospital for Rs 7.5 crore, the company informed the stock exchange on Tuesday.

“The board of directors consented the sale of Medinova Diagnostic Services Centre at Bangalore on a slump sale basis, together with the assets and liabilities relating to the centre but excluding the use of Medinova brand name,” the company said in an announcement.

The development comes after the company’s announcement on March 18, 2014 that it is considering selling the asset to Bangalore-based Chaparral Health Services Ltd.

According to the release, the transaction was closed on March 19, 2014.

The company also informed the stock exchange that its director DA Srinivas has resigned from its board, citing personal reasons. He was inducted in the board in 1999.

For FY13, the company clocked revenues of Rs 12.47 crore and a loss of Rs 24 lakh. The annual income of the company for FY12 was Rs 12.96 crore while net loss was Rs 26 lakh.

The diagnostic segment in the country is dominated by a few large players like Dr Lal PathLabs, Metropolis and SRL Labs with a large part of the market heavily fragmented. With a rise of PE investment in companies and expansion of bigger players, the sector has been seeing a lot of consolidation.

Earlier Dr Lal PathLabs acquired Gujarat-based Ashish Pathology Laboratory as part of its string-of-pearls strategy. Last year, Metropolis acquired a lab in Guwahati.

(Edited by Joby Puthuparampil Johnson)

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