Krishna Institute of Medical Sciences Ltd (KIMS), a healthcare provider operating hospitals and medical facilities, has approved the acquisition of up to 51% of the paid-up capital of Insignia Healthcare Pvt Ltd, an operations and management (O&M) entity operating KIMS-SIKHARA in Guntur, Andhra Pradesh.
Insignia operates a 150-bed hospital with the potential to expand capacity to 200 beds. The facility is equipped with medical infrastructure, diagnostic equipment and multiple operation theatres.
KIMS to manage hospital operations
The acquisition is aimed at enabling more efficient and effective management and operations of the hospital through KIMS’ specialist medical and professional teams.
KIMS has been engaged to exclusively manage and operate the hospital and provide medical services and additional healthcare services. The transaction is expected to strengthen the hospital’s clinical and operational capabilities.
Acquisition to be completed in phases
The acquisition of the equity shares does not fall within the definition of a related-party transaction. The stake acquisition is expected to be completed within 12 to 24 months.
The transaction will be settled in cash. The shares will be acquired at ₹30.35 a share, based on a valuation report issued by BDO Valuation Advisory LLP.
Further acquisition at valuation-based price
Any subsequent acquisition of shares will be undertaken at cost, based on a valuation report issued by an independent valuer.
The proposed investment will provide KIMS with an equity interest in the hospital while its management and operating role is intended to support the facility’s expansion and delivery of healthcare services.
Focus on capacity expansion
The hospital’s medical infrastructure, diagnostic capabilities and multiple operation theatres are expected to support the expansion of specialised and general healthcare services in the region.