Malaysia’s IHH Healthcare is planning to reduce its India footprint by cashing out of its 62.2% stake in Hyderabad-based Continental Hospitals and 74% in Global Hospitals, selling them back to the promoters, people in the know told The Economic Times.
In 2015, IHH took a 51% stake in Continental Hospitals for Rs 281 crore. In the same year, it invested in Global Hospitals to acquire 73.4% stake for Rs 1,280 crore.
Hyderabad-based Continental Hospitals has a capacity of 750 beds while Global Hospitals has over 2,000 beds in Hyderabad, Chennai, Bengaluru and Mumbai. IHH is believed to be open to divesting its stakes at almost half the value at which it originally bought them, the report said.
Alleged mismanagement and differences between promoters and IHH are the major reasons behind IHH’s move to exit, said one of the persons cited above.
Meanwhile, Embassy Group is in talks with Japanese financial services firm ORIX Corporation to sell a 30% stake in its property management business, Embassy Services Private Ltd (ESPL), in a deal valued at about Rs 2,300 crore ($324 million at current exchange rate), a person in the know told The Economic Times.
If the deal goes through, it will mark ORIX’s entry into property management business in India, the report said.
ESPL is a company delivering end-to-end integrated facility management services to more than 150 clients, covering approximately 70 million square feet of space across 14 Indian states.