Max Healthcare outbids Manipal for AMRI Hospitals, by Rs 900 crore

1 Dec 2022 , 10:01 AM

Max Healthcare Institute is eyeing the Kolkata-based Emami Group’s AMRI Hospitals with a counteroffer that outweighs an earlier Manipal Health Enterprises (MHE) bid by Rs900 crore, sparking a potential full-fledged corporate war between two of the country’s leading hospital chains.

According to sources close to Emami, with diverse business interests in consumer goods, medical care, and property development, Max has made a counter offer of Rs2,700 crore to buy the AMRI chain in order to strengthen its position in the east.

AMRI operates three super-specialty hospitals in Kolkata, as well as one in Bhubaneswar. The chain’s hospitals have a total capacity of 1,200 beds.

However, some sources close to Max Healthcare denied the news of making any offer for AMRI.

It has been in the news that MHE has petitioned the Delhi High Court to restrict the Emami Group from selling or transferring its 94% stake in the latter’s healthcare business, AMRI Hospitals, to a third party or changing its management while the arbitration proceedings are in force.

MHE has not clearly highlighted Max in its legal filing but has asked the court to intervene in order to complete the Rs1,800-crore deal it had agreed to with Emami’s promoter family.

According to sources close to Emami, a meeting between Manipal and Emami’s senior leadership last week in Mumbai was the literally last tipping point, resulting in a complete breakdown in negotiations.

As per Care Ratings, AMRI’s total debt as of September 30, 2021, was Rs1,654 crore, up from Rs1,587 crore at the end of March last year. Most of the debt, Rs1,352 crore, is in the form of unsecured loans from promoter group companies.

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