Apollo Hospitals to divest 23.3% stake in Apollo Munich

Last Updated: Jan 27, 2016 | 217 Views
Apollo Hospitals will divest 23.3% of its stake in Apollo Munich Health Insurance Company to its joint venture partner, Germany's Munich Re, for Rs. 163.5 cr. The current transaction values the joint venture at Rs. 703 cr. 

The deal will be formalised after the approval from the government which might happen by June-end of first quarter of 2016, said the company.  

After the deal, Apollo Hospitals’ shareholding in Apollo Munich will be reduced from 74.4% to 51.1%. Correspondingly, Munich Re’s shareholding in Apollo Munich shall move to 48.7% and 0.2% will be held by employees. Apollo Hospitals shall continue to hold its stake in Apollo Munich.

Dr. Prathap C Reddy, Chairman, Apollo Munich Health Insurance Company Ltd. and Chairman, Apollo Hospitals Enterprise Ltd., welcomed the development and said, “Insurance is a key element for making quality healthcare facilities accessible to the masses. The show of confidence from our JV partner will go a long way in helping the Group achieve its vision of ‘Healthcare for all’.