Bangalore-based oncology chain HealthCare Global Enterprises Ltd is acquiring a 17.72% stake in Suchirayu Health Care Solutions Ltd for a nominal amount, the company said in a stock-exchange disclosure last week.
A multi-specialty hospital in Karnataka's Hubballi, Suchirayu has been struggling financially of late.
“HealthCare Global is currently offering operations and maintenance services to Suchirayu Hospital. The hospital is in financial distress but we are in the process of turning it around,” BS Ajai Kumar, founder and chairman of HealthCare Global, told VCCircle. “We have taken this stake to show our confidence in the hospital,” he added.
HealthCare Global is paying a mere Rs 5 lakh for the stake it is acquiring in Suchirayu. As part of the transaction, it will be entitled to appoint one observer to Suchirayu's board, the documents show.
Suchirayu Hospital was earlier operated by Fortis Healthcare Ltd.
With the 70-bed NMR Curie Centre of Oncology, HealthCare Global already has a comprehensive cancer care centre in Hubballi. It also operates two multi-specialty hospitals in Gujarat's Ahmedabad and Bhavnagar. The company had acquired Ahmedabad-based Medisurge hospital in 2007 and currently owns a 74% stake in the entity.
Founded in 1998, HealthCare Global has 18 comprehensive cancer care centres in India. In July, the company launched its first overseas cancer care centre in Nairobi, Kenya.
It entered the infertility services space through the acquisition of a 50.1% stake in Bangalore Assisted Conception Centre Pvt. Ltd in 2013. Bangalore Assisted Conception Centre operates fertility centres under the brand name Milann. It offers specialised and comprehensive in vitro fertilisation and related services.
HealthCare Global is backed by PremjiInvest, the family office of Wipro chairman Azim Premji, Singapore state investment firm Temasek and International Finance Corporation. It got listed in March 2016.
In 2016-17, the company posted a profit after tax of Rs 22.2 crore on operating revenue of Rs 700.11 crore.