Max Healthcare to Acquire Controlling Stake in 250-bed Kalinga Hospital for ₹100 Crore

Max Healthcare Institute Ltd has announced its decision to acquire a controlling stake (~58.39%) in Kalinga Hospital Ltd (KHL), which operates a 250-bedded Multi-Specialty Hospital in Bhubaneswar, Orissa. The acquisition will be made through a share purchase agreement (SPA) and is expected to cost ₹100 Crore towards cost of construction, renovation, upgradation, equipment etc. The Board has also approved issuance of Corporate Guarantee to Bank/ Financial Institution for re-financing of External Commercial Borrowings of existing promoter of KHL of $5 Mn (along with interest due thereon). In addition, the Board has approved a Senior Secured Term Loan of amount up to ₹300 Crore in the form of External Commercial Borrowings for financing the acquisition. The Board has also approved the re-appointment of Mr. Narayan K. Seshadri as Non-Executive and Non-Independent Director for a further period of 3 years.