Rajasthan-based ASG Hospitals on Friday said it has taken operational control of Chennai-based Vasan Eye Care following the completion of all formalities and transfer of ownership under the insolvency and bankruptcy resolution process.
On February 3, the Chennai bench of the National Company Law Tribunal (NCLT) approved ASG Hospital’s ₹526-crore resolution plan to acquire Vasan Healthcare Pvt Ltd, with 98 per cent of the votes from the Committee of Creditors.
ASG Eye Hospitals was started in 2005 in Jodhpur. It claims to have delivered affordable and quality eye care to over 7.5 million people through a network of more than 54 eye hospitals across 17 States in India, Uganda, and Nepal. In India, its hospitals are in states such as Assam, Bihar, Gujarat, Odisha, Punjab, and Karnataka.
In a press release, ASG Hospitals said the strategic acquisition of Vasan Eye Care has increased its network to over 150 hospitals across the country.
“Post this strategic acquisition, we are proud to expand our network presence in South India,” Arun Singhvi, Chairman and Managing Director, ASG Hospital Pvt. Ltd., was quoted in the release.
In its resolution plan, ASG Hospitals said ₹394 crore will go towards paying all stakeholders of Vasan Health Care Pvt. Ltd., including creditors, while the remaining ₹126 crore would be spent towards working capital and capex infusion into the company.
Established in 2002 by late AM Arun, Vasan Eye Care was providing affordable eye care through its 97 centres across Tamil Nadu, Puducherry, Andhra Pradesh, Telangana, Kerala, and Karnataka. In 2017, the NCLT ordered insolvency proceedings against Vasan Health Care on a petition filed by Alcon Laboratories (India) Pvt. Ltd., one of its suppliers.
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