Healthcare & Life Sciences
Veda advises MG Cancer Hospital & Research Institute on its strategic divestment to HCG
About
MG Cancer Hospital & Research Institute
Incorporated in 1986, Vizag Hospital and Cancer Research Centre Private Limited is one of the largest cancer specialty hospitals in India. It operates 6 clinics in Andhra Pradesh, 8 clinics in Odisha & 1 clinic in Chhattisgarh. With its state-of-the- art facility, advanced technology and comprehensive medical program it offers cutting-edge cancer treatment services under one roof. The hospital boasts 196 operational beds and features advanced medical infrastructure, including 2 LINAC machines, 1 PET CT scanner, 1 Robotics Surgery System, and a dedicated Bone Marrow Transplant (BMT) unit. Its clinical team comprises 31 doctors, including 12 Surgical, 6 Radiation, and 4 Medical oncologists.
HCG
HealthCare Global Enterprises Ltd. (HCG), headquartered in Bengaluru, is the largest provider of cancer care in India. Through its network of 21 comprehensive cancer centers across India and Africa, HCG has brought advanced cancer care to the doorstep of millions of people. HCG’s comprehensive cancer centers provide expertise and advanced technologies for the effective diagnosis and treatment of cancer under one roof. Under the “Milann” brand, HCG operates 7 fertility centers.
Background
We are pleased to announce our client Mahatma Gandhi Cancer Hospital and Research Institute (“MGCHRI”), a unit of Vizag Hospital & Cancer Research Centre Private Limited (“VHCRCPL”) on divestment of controlling stake to HealthCare Global Enterprises Limited (HCG) for an Enterprise Value of INR 414 Cr. HCG will have initial 51% stake in VHCRCPL, with plans to acquire additional 34% stake over the next 18 months.
MG Hospital, owns and operates a comprehensive cancer care hospital in the city of Vishakhapatnam, Andhra Pradesh, with a well-built hospital infrastructure, having 196 operational beds facility. Led by Dr. Murali Krishna Voonna, a renowned surgical oncologist, MG Hospital is the largest private cancer care hospital in Vizag with industry leading metrics.
MGCHRI, located in a robust primary catchment area, also benefits from substantial secondary demand from neighbouring states. Its clinical standards closely align with HCG’s rigorous cancer care protocols, ensuring seamless integration post the transaction.
Veda Corporate Advisors (“Veda”) was the exclusive financial advisor to the Company and its promoters. Veda provided comprehensive transaction advisory services covering identification of prospective investors, strategic positioning including deal structuring, negotiation of key commercial terms, leading to the successful closure of the transaction.
“This marks Veda’s 56th transaction in healthcare and life sciences space 16th transaction in single specialty space.”
“Dr. Murali Krishna Voonna along with his team of experts, has built a leading comprehensive cancer care hospital in Vizag demonstrating consistent growth, clinical excellence & market leadership over the years. The strategic partnership with HCG will not only strengthen operational efficiencies but also enable MGCHRI to offer enhanced comprehensive, patient-centered care solutions.”
S Ganapathiraman
Managing Director, Veda Corporate Advisors
“It was pleasure working with the Veda team on this transaction. They handheld us through each stage of the process and their guidance/strategic inputs during critical junctures of deal greatly helped us in our decision making.”
Dr. Murali Krishna Voonna
Managing Director, Vizag Hospital and Cancer Research Centre Private Limited