With the proposed acquisition of AMRI Hospitals, the hospital business of Emami Group, by Manipal Health Enterprises awaiting the West Bengal government’s nod, the necessary approval for the takeover is “under process”, government sources said.
While the Kolkata-based Emami Group owns 98% in AMRI Hospitals, the West Bengal government owns the balance 2%. So, a “no-objection” certificate is required from the government for the proposed takeover. An application was filed in the health and family welfare department for the no-objection.
“It’s under process,” the government sources told FE.
Manipal Health Enterprises and Emami group have recently signed a non-binding agreement for the AMRI Hospitals. In the fresh bid, Manipal Health has hiked its original offer of Rs 1,800 crore, and is now likely to pay around Rs 2400 crore for AMRI, which has around 1,200 beds across four hospitals. The hospitals take care of around 4.5 lakh patients annually.
“Depending on the deal size, Emami group will decide on the utilisation of the money. Primarily, it will be used to cover the losses of the hospital business,” sources close to the development told FE.
“The transaction is not closed yet. Emami is taking into consideration all the legal aspects before closing the deal…It is difficult to tell when the deal would be concluded,” the sources added.
Emami group has been trying to sell its hospital vertical as the group considers it as a “non-core” business. Total debt of AMRI stands at around Rs 1,600 crore. If the deal sails through, it would help the group repay the debt at a very short period of time. The group will be focussing more on its FMCG, branded food and paper businesses, among others.
Notably, Manipal Hospitals had acquired 100% stake in Columbia Asia Hospitals in 2021 after completion of all regulatory approvals. With this acquisition, Manipal emerged as India’s second largest multi-speciality hospital chain after Apollo Hospitals.