Apollo Hospitals Restructuring Plan Cleared by CCI

New Delhi, Sep 23 (PTI) Fair trade regulator CCI on Tuesday approved a multi-layered restructuring plan involving Apollo Hospital's group entities Apollo Healthco and Keimed, and a wholly-owned subsidiary Apollo Healthtech Ltd.

The move came after Apollo Hospitals Enterprise in June this year said its board has approved the separate listing of its omnichannel pharmacy and digital health businesses within 18-21 months, as part of reorganisation exercise to unlock value.

According to the regulator, the restructuring will be carried out in several stages under a composite scheme of arrangement that was cleared by the boards and audit committees of the Apollo group entities in June this year.

As part of the transaction, the identified business undertaking of Apollo Health Enterprise Ltd (AHEL) will be demerged into Apollo Healthtech Ltd (AHTL).

This will be followed by the merger and amalgamation of Apollo Healthco Ltd (AHL) and Keimed Pvt Ltd with and into AHTL, paving the way for consolidation of healthcare and distribution businesses.

After these steps, the equity shares of AHTL will be listed on the stock exchanges.

The final stage of the transaction provides for the acquisition of 74.5 per cent shareholding of Apollo Medicals Pvt Ltd (AMPL) by AHTL from existing shareholders under a share purchase agreement executed between AHL, AMPL and its shareholders.

"CCI approves the proposed combination involving demerger of the identified business undertaking of AHEL into AHTL, merger and amalgamation of AHL and Keimed with and into AHTL, and acquisition of 74.5 per cent shareholding of AMPL by AHTL," CCI said in a post on X.

AHL operates the "Apollo 24|7" platform, which facilitates booking of doctor consultations and diagnostic tests, besides engaging in the pharmacy distribution business.

On the other hand, Keimed is engaged in wholesale and retail distribution of pharmaceutical products, medical and surgical equipment, and FMCG items.

In June, the board of directors of Apollo Hospitals and Apollo HealthCo, a subsidiary of the healthcare major, accorded in-principle approval for the composite scheme of arrangement.

The scheme creates a formidable omnichannel pharmacy distribution and digital health platform leader in India, with stated plans to achieve Rs 25,000 crore revenue by FY27.

Apollo Hospitals Enterprise MD Suneeta Reddy said the proposal enables the healthcare provider's shareholders to gain direct shareholding in the country's largest omni-channel pharmacy and digital health platform.

In a separate release, the competition watchdog cleared the proposed combination involving acquisition of IRB Hapur Moradabad Tollway Ltd, Kaithal Tollway Ltd, and Kishangarh Gulabpura Tollway Ltd by IRB InvIT Fund.

The anti-trust regulator also granted its nod for the acquisition of units of IRB InvIT Fund by Anahera Investment Pte Ltd.

"The acquisition of units of the public InvIT through institutional placement subject to pricing and other considerations. The manner and timing of such placement will be determined by the Public InvIT, and is subject to market and other considerations, the release said.

Anahera is part of the Singapore's sovereign wealth fund GIC while IRB InvIT (Infrastructure Investment Trust) Fund is the country's first listed InvIT.

In another release, the Competition Commission of India (CCI) also approved the acquisition of OC Oerlikon Textile Holding AG, Pfäffikon and Oerlikon Textile Inc (collectively targets) by Rieter Holding AG and Rieter North America Inc.

Switzerland-headquartered Rieter Holding AG is a global manufacturerof machinery and components for the textile industry while the targets are manufacturers of spinning systems used for manufacturing filaments and manmade fibers, texturing machines, and non-woven solutions.

The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.