Apollo likely to buy out Samudra Hospital

The Apollo Hospitals board will meet on Monday to consider acquisition of a hospital.

Industry sources said the company might consider a proposal to acquire Kakinada-based 100-bed Samudra Hospital, owned by Samudra Healthcare Enterprises. However, executives of Apollo Hospitals could not be contacted for confirmation.

Apollo Hospitals' acquisition of Samudra Hospital is subject to the settlement of dues with banks and financial institutions (FIs).

Samudra Healthcare has around Rs 10 crore dues with banks and institutions. Apollo has been managing Samudra Hospital for quite some time. Last month, Apollo had informed the stock exchanges that it was interested in buying the hospital once the dues were "satisfactorily" settled with banks and FIs.

Apollo Hospitals plans to invest Rs 350 crore to add 1,800 beds in the next 18 months. With the addition of Samudra Hospital, the group's total capacity will touch 7,200 beds, from 6,400 beds. The sources said the expansion would be through acquisitions and creation of greenfield facilities.

Since Apollo's expansion was planned nationwide, the company had commissioned a study by the Indian Market Research Bureau on various locations for existing and new facilities.

The investment for the proposed acquisitions would come from deployment of the $75 million fund the group had raised through its GDR.

The group recently lost out to Fortis Healthcare its bid to acquire Escorts Heart Institute and Research.

The Apollo Hospitals stock closed at Rs 442.55 on the Bombay Stock Exchange today, down 1.14 per cent.