Metropolis Healthcare announced that the board of directors has approved the acquisition of Dr. Ganesan's Hitech Diagnostic Centre (Hitech).
Established in 1986, Hitech Diagnostic Centre is a diagnostics laboratory chain in the South India market. Metropolis will acquire 100% equity of Dr. Ganesan's Hitech Diagnostic Centre in a combination of cash and stock deal. The entity is a debt free company. This acquisition is expected to be completed within 3 months.
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.
Metropolis said that 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 announcement was made on Sunday, 17 January 2021. Shares of Metropolis Healthcare fell 0.52% to settle at Rs 2,164 on Friday, 15 January 2021.
Metropolis Healthcare is a leading diagnostics company in India with a widespread presence across 19 states in India. Metropolis offers a comprehensive range of 4,000 plus tests and profiles that include advanced tests in diagnosis of cancer, neurological disorders, infectious diseases, and an array of genetic abnormalities.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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