In addition, Apollo 24/7 has entered into a framework agreement to merge Keimed Private Limited (Keimed), India’s leading wholesale pharma distributor, in a phased manner over the next 24-30 months.
Advent shall invest in compulsory convertible instruments over 2 tranches to secure 12.1% stake in the merged entity, by valuing the combined entity at an enterprise value of Rs 22,481 crores. Apollo 24/7 is valued at an enterprise value of Rs 14,478 crores. Keimed is valued at an enterprise value of Rs 8,003 crores. Following merger, Keimed shareholders would hold a maximum of 25.7% stake in the combined entity, while AHEL would continue to remain the largest controlling shareholder with at least 59.2% stake.
ET broke the story about Apollo in discussions with Advent International to acquire a minority stake in Apollo 24/7.
The merger is subject to further corporate approvals to be obtained at the relevant time.
“With Advent’s investment and the merger of Keimed, the combined entity will be one of the country’s leading retail health companies,” said Dr Prathap C Reddy, chairman, Apollo Hospitals Group.“The size of the merged supply chain will allow 1.4 billion Indians access to genuine medicines within 24 minutes to 24 hours, 7 days a week. The platform will continue to strengthen and evolve to deliver market-leading and curated omni-channel health offerings, and make high quality care accessible to all,” Shobana Kamineni, vice chairperson, Apollo Hospitals.Suneeta Reddy, MD of Apollo said the combined entity will deliver Rs 25,000 crores of revenue in 3 years with 7-8% EBITDA.
“This investment demonstrates Advent’s commitment to investing in the fast growing healthcare sector in India, backing high quality market leading players and working creatively with promoter-founders to drive value creation for all stakeholders,” said Shweta Jalan, managing partner and head of Advent India.
