HealthCare Global acquires majority stake in Suchirayu Healthcare
New Delhi: Cancer focused healthcare service provider HealthCare Global Enterprises Limited (HCG) on Monday said it has become a majority stakeholder in Suchirayu Healthcare Solutions with the acquisition of additional 60.9 per cent for an undisclosed sum.
With the transaction, HCG has increased its holding in Suchirayu from the existing 17.7 per cent to 78.6 per cent, the company said in a statement.
Suchirayu owns a multi-speciality hospital in Hubli with an operational capacity of 110 beds and a potential to scale up to 250 beds.
HCG has operated and maintained the hospital since August 2017 and had the right to increase its stake up to 80 per cent, the statement said.
"Having operated Suchirayu for the past four years with successful patient outcomes and desired financial results, acquiring a majority was a logical step in cementing our presence in the region. We are confident that we will be able to derive multiple synergies with this acquisition," HCG Executive Chairman BS Ajaikumar said.
HCG continues on its path to optimise capital allocations around cancer care and strengthen its pre-eminent position in the country, he added.
"M&A has been a core part of our strategy, and we have demonstrated our capability to integrate acquisitions," Ajaikumar noted.
Stating that Hubli is emerging geography with great potential, he said the acquisition will deliver focused medical care into this micro-market.
"We continue to explore opportunities in the regional cancer leaders' space to further consolidate our dominant position," Ajaikumar said.
HCG, which also owns and operates a standalone cancer centre at Hubli, said the acquisition is expected to create synergetic benefits and market leadership in the geography.