Gleneagles Development Pte. Ltd. | Joint Venture Exit

Sector: Healthcare - Hospital and related activities 

Announcement Date: 11 November 2020 

Name of Client: Gleneagles Development Pte. Ltd. (“GDPL”) 

GDPL is a subsidiary of Malaysia’s IHH Healthcare Berhad, one of Asia’s largest private healthcare group.  

Name of Target and Description: Apollo Gleneagles Hospitals Ltd. (“JV Company”) 

The target is a 50:50 joint venture company between GDPL and Apollo Hospitals Enterprises Ltd. (“AHEL”) (a public listed company), and owns and operates a multispecialty tertiary care hospital in Kolkata, West Bengal by the name of ‘Apollo Gleneagles Hospitals’. 

Deal Description: Advised Gleneagles Development Pte. Ltd. (GDPL) in relation to proposed  transfer its entire stake (50% of the share capital of the JV Company) to the JV partner- Apollo Hospitals Enterprises Ltd. (AHEL), pursuant to which the JV Company - Apollo Gleneagles Hospitals Ltd. will become the wholly-owned subsidiary of AHEL. The agreed sale consideration for transferring of equity shares by GDPL to AHEL is INR 4100 million. 

Total Consideration:  The agreed sale consideration for transferring of equity shares by GDPL to AHEL is INR 4100 million 

Team Members: The deal team was led by Anand Mehta (Partner), Vidur Sinha (Principal Associate), Aayush Misra (Principal Associate) and Bhavya Bhankharia (Associate). The deal team was assisted by Anisha Chand (Partner) and Soham Banerjee (Senior Associate), for the competition analysis regarding the transaction. 

Role of Firm: The Firm was involved in the following: 

Khaitan and Co acted as legal counsel to GDPL for the overall transaction (including negotiating, drafting and reviewing of various definitive agreements); and the execution and closing of the transaction along with other ancillary agreements. 

Other legal advisors if any: Legal counsel for AHEL: Shardul Amarchand Mangaldas & Co., Chennai