KIMS Hospitals to acquire 51.07% stake in Sunshine Hospitals; Stock zooms 6%

The acquisition deal is expected to be EPS accretive and provides an enhanced platform for KIMS.

Oct 28, 2021 12:10 IST India Infoline News Service

KIMS Hospitals has informed the exchange regarding acquisiton in Sunshine Hospitals.

The Company has executed definitive agreements to acquire a majority stake (51 .07%), (as a combination of 18.52% stake through equity shares and the remainder through partly paid-up equity shares, which shall be fully paid up by April 2022 based on an agreed schedule) in Sarvejana Healthcare private Limited (herein referred to as "Sunshine Hospitals"), which own and operates hospitals in and around Hyderabad, Telangana under the brand 'Sunshine Hospitals' at an Enterprise Value of Rs7,300mn subject to working capital adjustments on the closing date.

For Financial Year ended March'21 Sunshine Hospitals reported Rs4,118mn in revenue and Rs752mn in operating EBITDA.

The acquisition deal is expected to be EPS accretive and provides an enhanced platform for KIMS to further strengthen its presence in the key home market of Hyderabad and Secunderabad.

Sunshine Hospitals currently operates at three locations in Telangana, out of which two are in Hyderabad (Secunderabad and Gachibowli), and the third is in Karimnagar, a fast upcoming Tier 3 town.

Commenting.on the acquisition, Dr Bhaskar Rao, MD, KIMS Hospitals said, "we are very pleased to have Sunshine Hospitals and its distinguished team of doctors, clinicians and staff on board. Sunshine Hospitals is a natural fit, clinically and strategically to our vision of providing clinical excellence at affordable cost.

lt will also allow KIMS to consolidate its position in Hyderabad which is our core market."

Dr A.V. Gurava Reddy, MD, Sunshine Hospitals added, "We are excited to join KIMS Hospitals Group. We have a deep sense of admiration for KIMS, commitment to providing high quality healthcare at affordable prices and believe this fits well with the mission of Sunshine Hospitals."

KIMS was trading at Rs1146.95 per piece higher by 6.10% on Sensex, at around 12:39 PM.

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