Sweden-based healthcare and diagnostics services provider Medicover AB has decided to expand its operations in India by picking up a 22% stake in Sahrudaya Healthcare Pvt. Ltd, which runs a hospital chain under the MaxCure brand, for 13.2 million Euros ($15.5 million).
The company will look to further increase its ownership in MaxCure, which operates nine hospitals in Andhra Pradesh and Telangana, across two stages within the next two years. MaxCure will be considered as an associate company of Medicover AB.
The company, which had entered the Indian healthcare space in 2016 by agreeing to manage the operations of Medicover Fertility India, is also looking to acquire the company from the principal shareholder, Delhi-based Medicover Healthcare Pvt. Ltd, for $7.4 million (Rs 47 crore).
“Through these acquisitions, we will get a very interesting footprint in the Indian healthcare market. The private healthcare services market in India is growing about 15% per annum and we anticipate that we can, through our expertise and knowledge, be an active player in this market,” said Fredrik Rågmark, chief executive officer, Medicover AB.
The European company has presence across Poland, Germany, Romania, Ukraine, and Central and Eastern Europe and offers both outpatient and inpatient healthcare services. In 2016, the company had generated revenue of 497.3 million euros.
Sahrudaya, which was incorporated in January 2011, had registered a total income of Rs 166.3 crore and net loss of Rs 6.54 crore in 2015-16.
Inbound M&A deals
In 2015, IHH Healthcare had acquired 73.4% stake in Bengaluru-based Global Hospitals.
The company had also exited its 2005 investment in Apollo Hospitals Enterprise Ltd in two rounds over the past two years to make around Rs 1,900 crore, or about twice the money it had invested in the hospital chain.
IHH Healthcare, which is majority owned by Malaysian sovereign wealth fund Khazanah Nasional Berhad, also holds a 52.3% stake in Hyderabad-based Continental Hospitals through Parkway Pantai Ltd.