Metropolis Healthcare board clears acquisition of Hitech Diagnostic for Rs 636 cr

Diagnostic chain Metropolis Healthcare today said its board has approved the acquisition of Hitech Diagnostic Centre and its subsidiary Centralab Healthcare Services for Rs 636 crore.

"The Board of Directors of Metropolis Healthcare Limited approved the amendment to the terms and conditions of the Share Purchase agreement dated January 17, 2021, signed between the Company, Dr Ganesan's Hitech Diagnostic Centre Private Limited and its promoters/shareholders for the acquisition of 100 per cent stake in Dr Ganesan's Hitech Diagnostic Centre Private Limited along with its subsidiary Centralab Healthcare Services Private Limited," Metropolis Healthcare said in a statement.

Also read: 'With Fully Accessible Route, efforts are on liberalise FPI debt flows further': RBI Dy Governor

On January 17, 2021, the board had agreed on cash consideration of Rs 511 crore and equity consideration of up to 4,95,000 fully paid-up equity shares of Rs 2 each.

"Now the amended deal term is cash consideration of Rs 636 crore only as against the combination of cash and equity, earlier announced by the company," the statement said.

The indicative period for completion of the acquisition is 6 months, the filing said. The Metropolis Healthcare closed at Rs 2,640, down Rs 69.25 or 2.56 per cent, on Thursday as compared to the previous session close of Rs 2,709.25 on the NSE.

Also read: 'Serious methodological issues': Govt on India's lower Global Hunger Index 2021 ranking