Online medical store PharmEasy announced on June 25 that it would be acquiring a 66.1 percent stake in diagnostics services chain Thyrocare Technologies Ltd for Rs 4,546 crore.
API Holdings Ltd (API), the parent company of PharmEasy, announced the “signing of definitive documents to acquire 66.1 percent stake in Thyrocare from Dr. A Velumani and affiliates for Rs 1,300 per share aggregating to Rs 4,546 crore”, an official statement noted.
The transaction is subject to regulatory and other applicable customary approvals. Docon Technologies Pvt Ltd, a 100 percent subsidiary of API, will be the acquirer and shall make an open offer for an additional 26 percent stake.
Dr. A Velumani, the founder of Thyrocare, will be separately acquiring a minority non-controlling stake of less than 5 percent in API Holdings as part of a series of equity investments by existing and new API investors added. CNBC TV 18 reported that Dr. Velumani would be investing Rs 1500 crore and hold a 4.9 percent stake in API.
The lack of a succession plan at Thyrocare could be a key reason for Dr. Velumani to sell the company at a time when valuations are rewarding, sources privy to the development had earlier told.
Dr. Velumani, while commenting on the acquisition deal, said it is “unique of its kind” in the Indian healthcare industry. “The unique reach and strength of Thyrocare in Diagnostics blended with a young and dynamic team of PharmEasy will bring in better healthcare solutions for common man nationwide,” CNBC TV 18 quoted him as saying.
API Holdings has been reinforcing its portfolio ahead of the IPO. The purchase of Medlife made PharmEasy India’s largest medicine delivery platform. Former banker Aditya Puri recently joined the company’s board to help scale up the company’s businesses.
Thyrocare was listed on the stock exchanges in May 2016 with a market capitalization of around Rs 3,300 crore on its debut. The share price has risen to around Rs 1,300/share and gained Rs 300/share in June. The share was trading at Rs 1,315, up nearly 1.4 percent at the time of publishing.
Thyrocare is a leading pan-India diagnostic chain and conducts various medical diagnostic tests and tests that center on early detection and management of disease and medical disorders.