M&A

M&A

Apollo Hospitals to spin off, list digital health and pharmacy business

BSE Announcement  

Chennai-based, publicly listed Apollo Hospitals Enterprise Ltd (AHEL) is to spin-off and list its omnichannel digital health and pharmacy business units separately. As a first step, the pharma and digital health business will be spun off into a new entity (“NewCo”). Subsequently, Apollo’s healthcare arm Apollo HealthCo (AHL) and wholesale pharma distributor Keimed Pvt Ltd will be merged with the new entity.The resulting entity will thus comprise digital health platform Apollo 24/7, the offline pharma distribution of AHL, the third-party pharma distribution of Keimed, and telehealth services of AHEL. The shareholders of AHEL will receive 195.2 shares of NewCo for every 100 shares of AHEL.Veda Corporate Advisors were the exclusive financial advisors to the transactions. Shardul Amarchand Mangaldas were the legal advisors. Independent valuations of the transactions were conducted by KPMG (BSR) and BOO, and fairness opinion was provided by Axis Capital.