Medi­cover to ac­quire 22% stake in MaxCure

BioSpectrum (India) - - FINANCE NEWS -

Swe­den-based health­care and di­ag­nos­tics ser­vices provider Medi­cover AB has de­cided to ex­pand its op­er­a­tions in In­dia by pick­ing up a 22 per cent stake in Sahru­daya Health­care Pvt. Ltd, which runs a hos­pi­tal chain un­der the MaxCure brand, for 13.2 mil­lion Eu­ros ($15.5 mil­lion).

The com­pany will look to fur­ther in­crease its own­er­ship in MaxCure, which op­er­ates nine hos­pi­tals in Andhra Pradesh and Te­lan­gana, across two stages within the next two years. MaxCure will be con­sid­ered as an as­so­ciate com­pany of Medi­cover AB.

The com­pany, which had en­tered the In­dian health­care space in 2016 by agree­ing to man­age the op­er­a­tions of Medi­cover Fer­til­ity In­dia, is also look­ing to ac­quire the com­pany from the prin­ci­pal share­holder, Delhi-based Medi­cover Health­care Pvt. Ltd, for $7.4 mil­lion (Rs 47 crore).

The Euro­pean com­pany has pres­ence across Poland, Ger­many, Romania, Ukraine, and Cen­tral and East­ern Europe and of­fers both out­pa­tient and in­pa­tient health­care ser­vices. In 2016, the com­pany had gen­er­ated rev­enue of 497.3 mil­lion eu­ros. Sahru­daya, which was in­cor­po­rated in Jan­uary 2011, had reg­is­tered a to­tal in­come of Rs 166.3 crore and net loss of Rs 6.54 crore in 2015-16.

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