Chennai, Nov. 17
Although Apollo Hospitals Enterprise Ltd sold off its 32 per cent stake in The Lanka Hospital Corporation, the Chennai-based corporate hospital group will continue to run Apollo Lanka under a management contract.
In September, Apollo exited the Sri Lankan joint venture with Sri Lanka Insurance Corporation (SLIC), tendering its shares for Rs 65 crore in an open offer made by SLIC. At a press conference here, Mr H. Jarawardhane, Chairman, SLIC, denied that his group's taking control over The Lanka Hospital Corporation was through a hostile bid. He insisted that it had been a friendly takeover. Under the joint venture agreement, Apollo's stake could not fall below 32 per cent. But because it did, the agreement had to be terminated and replaced with a new management contract. The `Licensing and Support Services Agreement' was signed here on Friday by Mr Jayawardhane and Dr Pratap Reddy, Chairman, Apollo Hospitals.