IHH exits Apollo Hospitals, sells shares worth around Rs 830 cr

Industry:    2017-05-19
Integrated (Mauritius) Healthcare Holdings Limited (IHH) has exited from Apollo Hospitals by selling shares worth over Rs 830 crore. IHH, an arm of Malaysian sovereign fund Khazanah Nasional Bhd, is consolidating its Indian platform.

According to market sources, the number of shares offered was 6,654,712 (4.78 percent of the company) and the approximate price was Rs 1,246.10 per share.

Analysts said that this would benefit Apollo because the stock overhang would not be there.

A potential exit from AHEL may help IHH to infuse more money into its own hospital business in India. IHH acquired around 73.4 per cent stake in Global Hospitals in August 2015, for $195 million.

“They (IHH) are looking at India at a much bigger play now, and with a Rs, 1,800 crore valuation at present, selling the 11 per cent share in AHEL could help them to subsidise their India play,” said a source close to the development on condition of anonymity.

In 2005, Khazanah Nasional Berhad and its wholly owned subsidiary, Bisikan Bayu Investments (Mauritius) Limited, acquired 55,00,000 shares at Rs 350 per share, representing around 13.2 per cent equity stake in AHEL for a cash consideration of $44.23 million from TWL Holdings Limited. On that day, the company’s stock was trading at Rs 394.35 per share.

IHH Healthcare Berhad, a healthcare group in which Malaysia government’s sovereign wealth fund Khazanah Nasional holds a majority stake, is consolidating its India platform by rebranding Global Hospitals, in which it holds a majority stake, under the brand Gleneagles. The company has sold more than half of its stake in Apollo Hospitals, which analysts expect is an action towards strengthening its presence in India.

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