Apax Partners of UK buys 11% stake in Apollo for $100 mn

Apax Partners of UK buys 11% stake in Apollo for $100 mn
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First Published: Mon, Sep 03 2007. 09 51 PM IST
Updated: Mon, Sep 03 2007. 09 51 PM IST
London: British private equity firm, Apax Partners, is investing $100 million for an 11% stake in India’s Apollo Hospitals Enterprises to take advantage of the fast-growing healthcare industry.
The Apollo Group founded by Prathap Reddy in 1983 operates more than 40 sites and is stated to be Asia’s largest healthcare group.
According to a report in The Telegraph, Apax already co-owns General Healthcare Group, the biggest private operator in the UK, alongside the South African firm Netcare and recently sold its stake in Healthcare at Home, a leading domestic care provider, to Hutton Collins.
Apollo Hospitals Enterprise Ltd., India’s biggest health-care provider, gained the most in two weeks on the Bombay Stock Exchange on 3 September on plans to sell shares worth $104 million to Apax Partners.
Apollo shares rose Rs9.45, or 2%, to close at Rs493.55 at 3:30 p.m. local time, after gaining as much as 3.3 percent earlier. Apollo, based in Chennai, India said Aug. 31 it will sell as much as Rs4.26 billion ($104 million) of shares to Apax at Rs605.07 apiece. The funds will be used to build hospitals in India.
Apollo is building hospitals in five Indian cities, including Mumbai, Chennai and Hyderabad, adding 1,340 beds to the more than 7,000 it owns and manages, Venkataraman said. The expansion, expected to cost about Rs700 crore, will be also funded by loans from banks, he said.
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First Published: Mon, Sep 03 2007. 09 51 PM IST