Bengaluru-based HealthCare Global Enterprises Ltd (HCG), one of the largest cancer care networks, and Vizag-based Mahatma Gandhi Cancer Hospital & Research Institute (Vizag Hospital) have mutually agreed to extend the second closing date of acquisition by three more weeks.
Phased acquisition structure
As per the agreement, HCG announced the acquisition of Vizag Hospital in three tranches for a cash consideration of ₹414 crore. Q2 of FY25 was set as the first closing date for acquiring 51% stake for ₹207 crore, which was duly completed on time.
Extension of deadline
The extension pertains to the second tranche of the transaction, for which the earlier deadline was March 2026. The second tranche involves acquisition of an additional 34% stake for ₹155 crore.
On March 29, 2026, both the parties agreed to extend said the deadline by another three weeks, without giving any specific reasons.
Strategic rationale
On the rationale for acquiring Vizag Hospital, HCG said that this acquisition would help it to secure leadership in a highly attractive micro market, enhance operational and clinical synergies, unlock capacities, and strengthen its market positioning.
Final tranche valuation
The cost of acquisition of final 15% stake will be based on the valuation principles in accordance with and subject to the terms of the shareholders agreement.
This phased approach allows for flexibility in valuation and integration over time.
Hospitals profile
Established in 1986, Vizag Hospital owns a 196-bedded comprehensive cancer hospital (including a total of 26-day care, ICU and post-operative beds) and it posted turnover of ₹120 crore for FY24.
Founded in 1989, HCG has over 30 centres in India and Africa, which include comprehensive cancer hospitals, multi-speciality hospitals, and day care chemotherapy centres spanning across metropolitan, tier II, and tier III cities.