BENGALURU (Reuters) -PE firm Advent International will invest 24.75 billion rupees (nearly $297 million) in Apollo Hospitals’ unit Apollo HealthCo and will merge its online pharmacy vertical ‘Apollo 24/7’ with pharmacy distributor Keimed, the hospital chain operator said on Friday.
Advent will invest in compulsory convertible instruments over two tranches to secure a 12.1% stake in the merged entity, valuing the latter at an enterprise value of 224.81 billion rupees.
Apollo HealthCo is valued at an enterprise value of 144.78 billion rupees, while Keimed is valued at 80.03 billion rupees, the company said.
The merged entity is expected to deliver revenue worth 250 billion rupees in the next three years, said Apollo Hospitals MD Suneeta Reddy.
Apollo Hospitals will hold the largest controlling shareholding of 59.2% in the combined entity, while Keimed will have a 25.7% stake.
($1 = 83.3510 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema and Sohini Goswami)
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