Companies

HealthCare Global acquires additional 60.9% stake in Suchirayu Health

Our Bureau | | Updated on: Nov 22, 2021
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Logical step in cementing our presence in Hubli region, says Executive Chairman

HealthCare Global Enterprises Limited (HCG), a publicly listed speciality healthcare service provider focussing on oncology, announced the acquisition of an additional 60.9 per cent stake in Suchirayu Healthcare Solutions, Hubli, thereby increasing its stake from 17.7 per cent to 78.6 per cent. The additional stake was brought for a consideration of ₹33 crore.

Suchirayu owns a multi-speciality hospital in Hubli with an operational capacity of 110 beds and a potential to scale up to 250 beds. HCG has operated and maintained Suchirayu hospital since August 2017 and had the right to increase its stake up to 80 per cent in July 2022.

Oncology centres

HCG also owns and operates a standalone Cancer Centre at Hubli, and the acquisition is expected to create synergetic benefits and market leadership in the geography. HCG has a significant network of oncology centres located across leading cities.

Dr BS Ajaikumar, Executive Chairman of HCG, said, “M&A has been a core part of our strategy, and we have demonstrated our capability to integrate acquisitions. Having operated Suchirayu for the past four years with successful patient outcomes and desired financial results, Acquiring a majority was a logical step in cementing our presence in the region. We are confident that we will be able to derive multiple synergies with this acquisition.”

Shares of HCG were down by about half per cent at ₹250 apiece on the BSE on Monday.

Published on November 22, 2021

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