Hyderabad-based healthcare start-up company Vitae Healthcare Pvt Ltd has entered into a share purchase agreement with the Singapore-based healthcare major Pacific Healthcare Holdings Ltd to buy out the latter’s 70% stake in their joint venture company, Pacific Hospitals Pvt Ltd. This comes close on the heals of the Ranbaxy group promoted Forts Healthcare picking up a 46% stake in the Chennai-based Malar Hospital for a consideration of close to Rs 26 crore. Fortis has also made an open offer for an additional 20% stake in Malar Hospital to comply with the takeover code laid out by the stock market regulator, Securities and Exchange Board of India (Sebi).
According to analysts, Vitae’s buy of Pacific’s stake in the Hyderabad joint venture is a clear sign of the domestic healthcare players upping their ante and marks the latest among a serious of mergers and acquisition deals sweeping the sector. Major players like Apollo Hospitals Group, Escorts and Frotis Healthcare are in the look out for similar opportunities both in India and abroad.
“The board of directors of Pacific Healthcare Holdings Ltd (PHH) wishes to announce that the Company had on 21st September 2007 entered into a Sale and Purchase Agreement (S&P Agreement) with Vitae Healthcare Pvt Ltd, India, (Vitae) to dispose its 70% equity stake in its joint venture company, namely, Pacific Hospitals Pvt Ltd (PHPL) held through its 70% shareholding in Pacific Healthcare (India) Pte Ltd (PHI) …. The divestment will be in 2 tranches. The 1st tranche of 21% was divested on 21st September, 2007 and the 2nd tranche of 49% will be divested by 20th September, 2008”, Pacific said in a regulatory filing with the Singapore Stock Exchange on Monday. Attempts to reach both companies for comments were futile.
According to Pacific Healthcare, “the disposal will generate a gross sale proceeds of approximately Singapore $6.78 million and will result in a net gain of approximately S $2 million after making provisions”.
Pacific Hospitals is a joint venture between Pacific Healthcare Holdings and Vitea Healthcare Pvt Ltd. Pacific is one of the largest healthcare company in Singapore. Vitae is promoted by first generation medical professionals and scientists with a keen interest in cutting-edge healthcare and research activities.