HealthCare Global Enterprises Ltd (HCG) has acquired a 51 per cent stake in Mahatma Gandhi Cancer Hospital & Research Institute (MGCHRI) in Vizag for an enterprise value of ₹4,140 million. The stock price of HCG increased by 2.44 per cent and closed on Friday at 380.50 on the BSE. This acquisition is expected to address significant gaps in demand-supply in radiation therapy equipment, which has a penetration rate of less than 0.6 per million in Andhra Pradesh and Orissa.
HCG will additionally be acquiring an 34 per cent stake over the next 18 months, completing the acquisition.
Commenting on the acquisition, Dr. B.S. Ajaikumar, Executive Chairman, HealthCare Global Enterprises Ltd, said that “this collaboration is expected to optimise doctor availability and consolidate medical technology”.
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HCG, headquarted in Bengaluru, is a cancer care network with a network of 21 comprehensive cancer centers across India and Africa. MGCHRI is a provider of comprehensive cancer care in Vizag with the highest market share. This acquisition is expected to bolster HCG’s annual EBITDA by ₹3 per share enabling HCG to secure a dominant position in the Vizag region in cancer treatment network.
Mr. Raj Gore, CEO HealthCare Global Enterprises Ltd., said, “With state-of-the-art facility, advanced technology and comprehensive medical program, MGCHRI aligns perfectly with our commitment to delivering high-quality healthcare.”
Through this acquisition, HCG aims to widen its multi-modality programs, involving various treatment approaches for cancer patients. This also helps in improving customer engagement strategies by capitalising on operational and scale advantages. This synergy not only benefits the utilisation for digital marketing initiatives to bolster the company’s EBITDA margin, indicating increased profitability and enhance EPS (earnings per share) growth.