Wednesday, April 4, 2007

Global acquires Chennai hospital for Rs 257 crore

The Hyderabad-based Global Hospitals, part of Ravindranath GE Medical Associates, has acquired Sri Kanchi Kamakoti Sankara Hospital (formerly Tamilnad Hospital) in an all-cash deal, for Rs 257 crore to be paid in tranches.

The Madras High Court on Monday permitted Sri Kanchi Kamakoti to encash the earnest money deposit of Global Hospitals and complete the sale of the property. The Chennai-based Sankara Hospital, abutting the Old Mahabalipuram road, is spread over 46 acres and has 450 beds.

In July 2006, a division bench of the Madras High Court had permitted the Sri Kanchi Kamakoti Peetam Charitable Trust to sell the Sankara Hospital. The trust, in its application to sell the hospital, said it could not run it and had become heavily indebted.

Subsequently, corporates and healthcare majors, including the Murugappa group, Satya Sai Hospitals of Chennai, Bangalore-based Shriram Properties, Kolkata-based Advanced Medical and Research Institute and Global Hospitals bid for the property. Global emerged winner by quoting Rs 257 crore and assuring that it would run the existing hospital, retain the employees and provide 50 free beds.

Read more in The Business Standard article.

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