Krishna Institute of Medical Sciences (KIMS) has entered into a definitive agreement to acquire 51 per cent stake in SPANV Medisearch Lifesciences Private Limited, Nagpur, which is running Kingsway Hospitals, a multi-speciality hospital with over 300 beds for ₹80 crore.
Existing promoters and shareholders will continue to hold a balance 49 per cent stake. Post-acquisition, the hospital will be renamed KIMS Kingsway Hospitals, Hyderabad-based KIMS said in a release on Tuesday.
Reinforcing vision
“The acquisition in Nagpur reinforces our vision to provide affordable quality care to all. The clinical and management team of Kingsway Hospitals echoes our value system and is equally passionate about providing the best clinical outcomes to patients,’‘ Bhaskara Rao, MD, KIMS Hospitals said.
“It also reiterates our commitment to expand in Maharashtra and this will be our second hospital in Maharashtra, the first being Nashik,” he added.
Prakash Khetan, Managing Director, Kingsway Hospitals said: “We have found an equally committed partner in KIMS Hospitals who shares our passion. I am sure that we will now be able to offer the same world-class clinical experience of KIMS right herein Nagpur to our patients with this partnership.’‘
Scaling up
The existing hospital premises has the scope to further scale up the bed capacity as and when required in the future with minimal Capex.
Kingsway Hospitals was started in the year 2019 by Sancheti family along with a few top practicing doctors at Nagpur. The top specialties of Kingsway include Cardiology, Nephrology, Urology, Orthopaedics, Paediatrics, and Oncology.
The acquisition will be completed by way of infusion of funds into the company to the extent of ₹80 crore which will be used to repay the existing debts and partly to strengthen the Balance Sheet, the company said.