Malaysia’s IHH Healthcare Berhad is poised to grow its India operations, with the hatchet now buried with the founder of Ravindranath GE Medical Associates, which owns the Gleneagles Global Hospitals chain.
Through its wholly-owned subsidiary, Gleneagles Development Private Limited, IHH has inked an agreement to buy out the remaining stake held by Dr Ravindranath Kancherla and his affiliates in Ravindranath GE Medical Associates Private Limited (RGE) for about ₹740 crore.
The advantage with the Gleneagles Global chain becoming entirely IHH-owned (98.2 percent) is that it can grow across the country, Anurag Yadav Chief Executive Officer, IHH Healthcare India, told businessline. The last three years have been caught up in litigation and with the hatchet now buried, individual hospitals can also be expanded, he said. The chain will be branded Gleneagles, he said, adding that they would scout to furthter acquire 200-350-bed hospitals across the country.
The Gleneagles Global Hospitals transaction is expected to be completed by the fourth quarter of 2023, by when the CEO expects to wrap up the remaining 1.8 percent held by other investors as well. IHH has about 6-7 brands internationally, but for the present will operate under the Gleneagles and Parkway brands, said Yadav.
IHH has been in the spotlight in the past, over its acquisition of the Fortis Hospitals chain, where it holds 31 per cent stake. In 2018, IHH Healthcare had won the bid for Fortis in a long-fought battle, and the transaction awaits a go-ahead on its open offer.
Ravindranath is the founder of RGE and the Gleneagles Global Hospitals chain includes six multi-super-speciality hospitals across Hyderabad, Chennai, Bengaluru, and Mumbai.
The hospitals have a capacity of about 1,500 beds and revenues of about ₹1,000 crore, said Yadav, pointing to its strength in undertaking organ transplants.
The transaction reflects the group’s commitment and strategic focus in the healthcare sector in India, said Ashok Pandit, Group Chief Strategy and Business Development Officer, IHH Healthcare, acknowledging the eight-year partnership with Kancherla.