 "Yatharth Hospital to acquire 60% stake in MGS Infotech for Rs 152 crore")
Yatharth Hospital and Trauma Care Services on Wednesday announced that its board had entered into an agreement to acquire a 60 per cent equity stake in Faridabad-based healthcare services company MGS Infotech Research and Solutions, at an enterprise value of Rs 152 crore.
The acquisition includes a yet-to-commence 400-bed hospital in Faridabad, Haryana, in the National Capital Region (NCR).
“The structure of the said hospital is completed and is expected to be operational within six to ten months from the date of acquisition of shares,” Yatharth stated in a regulatory filing on the Bombay Stock Exchange (BSE).
The acquisition is expected to be completed by the end of December 2024. This would be the second such acquisition in Faridabad by the company this year.
In February 2024, Yatharth Hospitals acquired a 100 per cent stake in the Faridabad-based 175-bed Asian Fidelis Hospital for an enterprise value of Rs 116 crore.
The announcement to acquire a major stake in MGS Infotech comes just a day after Yatharth Hospitals announced the acquisition of another 300-bed capacity super-speciality hospital in Delhi for a cost of approximately Rs 160 crore.
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The acquisition was done under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, through an ‘e-auction’.
“The hospital acquisition will give us a firm presence in the Delhi market, strengthening Yatharth’s positioning as a leading super-speciality chain in Northern India,” the company said in a notification on the BSE.
Commenting on the acquisition, Yatharth Tyagi, whole-time director, Yatharth Hospitals, said that the move was in line with the company’s commitment to growth through strategic expansion, both in organic and inorganic modes, showcasing its expertise in developing new healthcare facilities and successfully turning around existing operations.
On Wednesday, shares of Yatharth Hospital and Trauma Care Services rose by 1.91 per cent, ending the day’s trade at Rs 670.90 on the BSE.