Private Equity

PE Fund Investments

Advent to invest $300-M in Apollo HealthCo for 12.1% stake

BSE Announcement  

Private Equity firm Advent International (via its unit Rasmeli Ltd) is to invest INR 2,475 crore (about USD 300 million) in Apollo HealthCo Ltd (AHL), a subsidiary of publicly listed, Chennai-based Apollo Hospitals Enterprise Ltd (AHEL).Concurrently, Keimed Pvt Ltd, a wholesale distribution company owned by the promoters of the Apollo group, is to be merged with AHL.Advent will invest in compulsorily convertible debentures (CCDs) of AHL in two tranches – INR 1,732 crore (70%) at the first close, and INR 743 crore (30%) in 12 months. When the CCDs are converted into equity, Advent will end up with a 12.1% stake in AHL, valuing the combined entity at INR 22,481 crore. It will also appoint one director to the AHL boardAHL is into two businesses — digital healthcare (Apollo 24/7) and pharma distribution. Under ‘pharma distribution’, it serves the 6,000-odd pharma outlets owned by Apollo Pharma Ltd, a group company. The merger of Keimed with Apollo HealthCo will raise the number of pharmacies it serves to 70,000. After the merger, the shareholding in Apollo HealthCo will be as follows: AHEL 59.2%; existing shareholders of Keimed 25.7%; Advent International 12.1% and ESOP holders 3%.Veda Corporate Advisors was the exclusive financial advisor to the transaction. AZB & Partners was legal advisor to AHEL, while Shardul Amarchand Mangaldas was the legal advisor to AHL for the transactions. Cyril Amarchand Mangaldas was the legal advisor to Advent. KPMG and EY provided valuation services.