IHH Healthcare picks up 51% stake in Continental Hospital for Rs 281 cr

Deal executed through IHH Healthcare's Singapore-based subsidiary Gleneagles Development Pte Limited

Malaysia’s IHH Healthcare Berhad, the world’s second-largest listed healthcare operator by market capitalisation, has acquired a controlling 51 per cent equity stake in Hyderabad-based, 750-bedded Continental Hospitals Limited (CHL), reportedly for $45.4 million (approximately Rs 281 crore).

When contacted, hospital sources confirmed the development. They, however, declined to share further details.

The deal was executed through IHH Healthcare’s Singapore-based subsidiary Gleneagles Development Pte Limited. The principal activity of Continental Hospitals is delivering primary, secondary, tertiary and quaternary healthcare services, IHH said in a filing to Bursa Malaysia Securities Berhad.

“Continental’s carefully chosen team of experts, who are internationally-recognised healthcare professional from over 30 specialties, is dedicated to providing top-notch patient care using world-class medical equipment and superior technology,” IHH said.

The controlling stake acquisition will not have any effect on IHH's issued paid-up share capital and substantial shareholders’ shareholdings, it added.

IHH Healthcare’s initial public offering (IPO) became the first IPO to be simultaneously listed on Bursa Malaysia and Singapore Exchange Securities Trading Limited in July 2012. Currently, the company has a market capitalisation of RM 39.26 billion on Bursa Malaysia, while it is valued at S$15 billion on the Singapore stock exchange.

IHH, which is growing rapidly, specifically in Asia, central and eastern Europe, West Asia and North Africa, already has two joint ventures with Apollo Hospitals, running Apollo Gleneagles Hospital in Kolkata and Apollo Gleneagles PET-CT centre in Hyderabad.

Today, IHH’s business units operate over 7,000 licenced beds in 38 hospitals as well as medical centres, clinics, and ancillary healthcare businesses across 10 countries, with over 3,000 new beds in the pipeline to be delivered through new hospital developments and expansion of existing facilities, according to information available on IHH’s website.

Continental Hospitals was founded by doctor-turned-entrepreneur Guru N Reddy in March 2013. The hospital, located in the Financial District of Hyderabad at Gachibowli, has a built-up area of 1.3 million sft spread over six acre.