UAE based NMC Healthcare highest bidder for SevenHills hospital: Report
MUMBAI: Several firms have been vying for acquiring SevenHills Hospital in Mumbai and according to recent media report, billionaire BR Shetty led group has emerged as the highest bidder
Billionaire BR Shetty’s Dubai-based group, NMC Healthcare is the largest healthcare provider in the UAE and is also listed in the London Stock Exchange. According to its website,With a team of over 2,000 doctors and 18,000 paramedical and support personnel, NMC owns and manages over 135 healthcare facilities that includes hospitals, medical centres, long-term care facilities, day surgery centers, fertility clinics and home health services. It is now aiming to set up operations in India.
In order to acquire the assets of Seven Hills hospitals, several giants are competing in the race including Manipal Hospitals, private equity fund Bain, Apollo Global Management, Bank of America Merrill Lynch, investment bankers JM Financial, private equity player KKR, Apollo Hospitals, Dubai based Aster DM and Narayana Health in partnership with Piramal Group.
Later in June this year, Nita Ambani-led Reliance Foundation had joined the race and submitted its expression of interest documents to buy the hospital and is now among 15 entities who have submitted their expression.
Hyderabad Bench of the National Company Law Tribunal has declared the 1500-bedded hospital as bankrupt after Seven Hills Healthcare defaulted on bank loans worth Rs 1,300 crore
This year, a State Bank of India (SBI) consortium and lenders led by Axis Bank has initiated the insolvency procedure against the Seven Hills due to an estimated debt of Rs 1,300 crore.
ET reports that the other lenders include Allahabad Bank, Union Bank of India, Punjab & Sind Bank, UCO Bank, Canara Bank, Central Bank and Bank of Maharashtra.
Seven Hills hospital chain was started by Andhra Pradesh-based medical professional Jitendra Maganti in 1982 and was built in Mumbai under a public-private partnership of nearly Rs 1,000-crore investment. The hospital operates nearly 1500 beds in Mumbai and Vishakhapatnam.
In June this year, 77 percent of debt of cash’s trapped Seven Hills had been acquired by Bank of America Merrill Lynch (BofA-ML) and J M Financial Asset Reconstruction Company together.
Medical Dialogues had earlier reported about Seven Hills Hospital facing a major financial crunch that forced it to shut down its outpatient department services in January 2018 to save expenses. Moreover, the hospital also was not able to pay its employees including employed and consultant doctors, which forced the doctors to refrain from coming to duties. The hospital came out with the decision to shut down its OPD after discussing with the senior doctors and management. One of the major reasons for the shutdown comes as saving the electricity bill which ram to the tune of Rs 1 crore per month.
The Brihanmumbai Municipal Corporation (BMC) had also taken stringent action against the hospital over non-payment of Rs 9 crore property tax.