New Delhi: Private equity giant Advent International has approached the fair trade regulator CCI, seeking approval to acquire a 24.9 per cent stake in multi-speciality healthcare provider Yatharth Hospitals.
US-based Advent International is acquiring the stake through its Cyprus-based investment fund Rasmalai Ltd.
“The proposed combination relates to the acquisition of shareholding by the acquirer (Rasmalai Ltd) in the target (Yatharth Hospital & Trauma Care Services Ltd),” according to the notice filed with the CCI on Tuesday.
The primary objective behind the transaction for the acquirer, Rasmalai Ltd, is to expand its footprint in India’s fast-growing healthcare sector and support Yatharth Hospital’s expansion plans.
Meanwhile, Yatharth Hospital aims to use the capital infusion to fund its growth strategies and strengthen its healthcare network across the country.
Noida-based Yatharth Hospital and Trauma Care Services operates a network of super-speciality hospitals in India, providing comprehensive healthcare services, diagnostics, and advanced medical procedures across multiple specialities.
Founded in 2008, Yatharth is one of north India’s fastest-growing listed healthcare providers, operating nine multi-speciality hospitals with 2,800 beds and an overall announced capacity of 3,250 beds.
In its submission to the regulator, the parties (Rasmalai Ltd and Yatharth Hospitals) noted that the proposed transaction will not alter the competitive landscape or result in any appreciable adverse effect on competition in India.
The relevant market has been identified as the “retail sale of pharmaceutical products in India”, according to the notice.
Last month, Yatharth Hospital and Trauma Care Services announced that Advent International has entered into a definitive agreement to invest Rs 3,150 crore of primary capital in the company.
After the transaction closes, subject to customary closing conditions, Advent is expected to acquire a minority stake of 24.9 per cent in Yatharth Hospitals.
