Apollo Hospitals acquires 51% stake in Guwahati-based Assam Hospitals

The acquisition, for a consideration of around Rs 57.25 crore, is expected to strengthen its presence in Northeast

Apollo Hospitals Enterprise Ltd (AHEL) has announced acquisition of majority stake in Guwahati-based Assam Hospitals Ltd for a consideration of around Rs 57.25 crore. The acquisition is expected to strengthen Apollo Hospitals' presence in the Northeast region.

The company today said that it has entered into definitive agreements for the acquisition of a 51 per cent stake in Assam Hospitals Ltd, which runs a 220 bed hospital in Guwahati, which is profitable. The acquisition would be for an overall consideration not exceeding a sum of Rs 57.25 crore, it said.

Suneeta Reddy, managing director of AHEL said, "In order to strengthen Apollo's position in the Northeast region, Apollo was on the lookout for acquisitions to grow inorganically and considers the acquisition as the right choice given its significant presence in the Northeast region."

Post-acquisition of a majority stake, Apollo is planning to upgrade as well as expand the capacity of the existing facility to 300 beds. In the coming years, AHEL will introduce new services and offerings built on its deep domain expertise, said the company,

The hospital, situated on the Guwahati-Shillong Road, was started as a 50 bed facility in the year 2000. Expanding it to 220 beds, the occupancy level is currently over 80 per cent. The existing promoters of AHL have decided to bring in a strategic partner to add value and strengthen its position in the Northeast region, said the AHEL announcement.