For consideration of Rs 511 crore
Metropolis Healthcare announced that the Board of Directors has approved the acquisition of Dr. Ganesan's Hitech Diagnostic Centre (Hitech).The acquisition will be a combination of cash and stock deal. The target entity is a debt free company. Cash consideration will be Rs. 511 crore and Metropolis will issue up to 4,95,000 equity shares of Face Value Rs.2/- each on preferential basis, subject to Shareholders approval, to the Promoter Group of Hitech. The Cash consideration will be funded through internal accruals and Debt of up to Rs. 300 crore.
The acquisition will allow Metropolis to increase its B2C business in focus cities of Chennai and Bengaluru and benefit through optimization of operational costs in the areas of procurement, supply chain, administration and support resource, laboratory network and back office infrastructure. It will further allow Metropolis brand to make deeper inroads in different customer segments across key markets in South India. Metropolis will get access to 31 laboratories including 3 NABL and ICMR accredited laboratories and 68 collection centres of Hitech.
The acquisition is expected to be completed within 3 months.
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