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Abraaj buys stake in CARE Hospitals for 1,800 crore
In a major development, Dubai-based investor Abraaj Group has acquired majority stake in healthcare major CARE Hospitals from Advent International. The transaction is reportedly valued at around Rs 1,800 crore.
Dubai-based PE investor will hold 72% share in healthcare group
Hyderabad: In a major development, Dubai-based investor Abraaj Group has acquired majority stake in healthcare major CARE Hospitals from Advent International. The transaction is reportedly valued at around Rs 1,800 crore.
Advent International, a global private equity firm, bought 72 per cent stake in the city-based Quality CARE India Limited, the parent entity of CARE Hospitals, for Rs 650 crore four years ago, and sold the stake to Abraaj now, netting nearly three times returns on its investment.
Founded in 1997 by Dr B. Soma Raju and a core group of medical professionals, CARE Hospitals is the fifth largest healthcare provider in India, operating 2,600 beds across 16 hospitals in nine cities. Currently, promoters own 28 per cent stake in the group. People with the knowledge of the development told Hans India that Dr Soma Raju would continue to lead the CARE group even after Abraaj’s acquisition.
“Access to healthcare is a fundamental right of every individual, and we are delighted that CARE and Abraaj share this common vision. We are confident that Abraaj with its track record, healthcare expertise and strong relationships with leading strategic partners and development finance institutions, will enhance our service offerings,” said Dr B Soma Raju, Founder, CARE Hospitals.
Abraaj and CARE’s management team will now focus on expanding group’s integrated healthcare delivery system, especially in the underpenetrated regions of India. The partnership will also take CARE’s high quality and proven delivery platform to other markets where Abraaj operates. The Dubai-based company has a strong track record of investing in healthcare, having deployed nearly $1 billion globally in 27 investments in healthcare space across growth markets.
“Our healthcare operations team looks forward to working with Dr Soma Raju, the core group of doctors, and the CARE management team to accelerate the deployment of CARE’s healthcare solutions to underserved communities,” said Khawar Mann, Managing Director and Head of Healthcare, Abraaj Group. The transaction is subject to customary closing conditions and is expected to conclude in the first quarter of 2016, a company release said.