Chennai: In a big merger within the healthcare sector, wholesale pharma distribution firm Keimed has merged with Apollo Well being Co Restricted (AHL), a subsidiary of Apollo Hospitals Enterprise Restricted (AHEL). This takes the mixed enterprise worth of the 2 entities to Rs 22,481 crore.
Whereas Keimed is owned by the Apollo promoter’s household, omni-channel healthcare platform AHL will leverage on the previous’s huge community of greater than 70,000 pharmacies everywhere in the nation. The mixing will happen in a phased method over the subsequent 24-30 months. Veda Company Advisors had been the unique monetary advisors to the transactions, the assertion added.
AHL enterprise includes backend distribution companies to greater than 6,000 pharmacies throughout 1,100 cities and Apollo 24|7, a complete digital well being platform, encompassing a wide selection of healthcare companies corresponding to physician consultations, drugs house deliveries, diagnostics at house, continual situation administration and insurance coverage choices.
In a press release right here on Friday, AHL mentioned it has entered right into a binding settlement to lift fairness capital of Rs 2,475 crore from world personal fairness investor, Introduction Worldwide. It should put money into obligatory convertible devices over two tranches to safe 12.1 per cent stake within the merged entity, by valuing the mixed entity at an enterprise worth of Rs 22,481 crore.
Whereas AHL is valued at an enterprise worth of Rs 14,478 crore, Keimed is valued at Rs 8,003 crore. Pursuant to merger, Keimed shareholders would maintain a most of 25.7 per cent stake within the mixed entity, whereas AHEL would proceed to stay the biggest controlling shareholder with a minimum of 59.2 per cent stake.
Prathap C Reddy, chairman, Apollo Hospitals Group, mentioned, “With Introduction’s funding and the merger of Keimed, the mixed entity shall be one of many nation’s main retail well being corporations.”
Suneeta Reddy, managing director, AHEL mentioned, “The merger of Keimed is a big step within the integration of the great provide chain. The mixed entity will ship Rs 25,000 crore of income in three years with 7-8 per cent EBITDA.”
Pankaj Patwari, managing director, Introduction India, mentioned “We try to construct India’s largest omnichannel health-tech platform.”
