New Delhi: The Competition Commission of India (CCI) has approved the acquisition of up to 100% equity shareholding in Apollo Fertility Centre Pvt. Ltd. (AFCPL) and 100% equity shareholding in Apollo Specialty Hospitals Pvt. Ltd. (ASHPL) by Kids Clinic India Ltd. (KCIL), along with related transactions.
The approval marks a key development for Kids Clinic India as it expands its presence across the healthcare sector.
The proposed combination involves the acquisition of up to 100% equity shareholding of AFCPL and 100% equity shareholding of ASHPL by KCIL.
The transaction is referred to as the Proposed Apollo Acquisition.
As part of the proposed combination, Kids Clinic India will also facilitate the issuance of equity shares and optionally convertible debentures representing a 9.9% shareholding in KCIL on a fully diluted basis to Apollo Health and Lifestyle Limited (AHLL).
This issuance will form part consideration for the Proposed Apollo Acquisition and is referred to as the Proposed KCIL Acquisition.
In addition, certain equity shareholding in Kids Clinic India will be issued to Arvon Investments Pte. Ltd. (Arvon), under what is termed the Proposed KCIL Investment.
The aforementioned steps are collectively referred to as the ‘Proposed Combination’.
Kids Clinic India’s Healthcare Operations
Kids Clinic India Ltd. (KCIL) is a public limited company operating chains of super-specialty hospitals under the brand ‘Cloudnine’.
The company is focused on mother and baby care and operates across the verticals of maternity, gynaecology, paediatrics and fertility.
Kids Clinic India currently operates centres across multiple cities in India, including Bengaluru, Delhi NCR, Mumbai, Pune, Chennai, Hyderabad, Lucknow, Ludhiana and Chandigarh.
The company’s operations span multiple healthcare segments, with its Cloudnine hospital network focused on services related to maternity, gynaecology, paediatrics and fertility.
The proposed acquisition of Apollo Fertility Centre and Apollo Specialty Hospitals forms part of the broader Proposed Combination involving Kids Clinic India.
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Apollo Health and Lifestyle Limited
Apollo Health and Lifestyle Limited (AHLL) also operates in the healthcare space through primary care clinics and diagnostic services.
Apollo Hospitals Enterprise Limited (AHEL) holds 100% equity shareholding in AHLL. AHEL is a publicly listed company, with its promoter group holding 28.02% shareholding, while public shareholders hold the remaining 71.98% shareholding.
Under the proposed transaction, AHLL will receive equity shares and optionally convertible debentures representing 9.9% shareholding in Kids Clinic India on a fully diluted basis. The issuance will form part consideration for the Proposed Apollo Acquisition.
Apollo Fertility Centre
Apollo Fertility Centre Pvt. Ltd. (AFCPL) is a chain of fertility clinics under the Apollo Group and is entirely held by Apollo Health and Lifestyle Limited.
AFCPL specialises in assisted reproductive treatments and reproductive medicine. Its services include In vitro fertilisation (IVF), embryo freezing and genetic testing, among other fertility-related services.
Under the Proposed Apollo Acquisition, Kids Clinic India will acquire up to 100% equity shareholding in Apollo Fertility Centre Pvt. Ltd.
The acquisition of AFCPL is one of the key components of the Proposed Combination approved by the CCI, alongside the proposed acquisition of Apollo Specialty Hospitals Pvt. Ltd.
Apollo Specialty Hospitals
Apollo Specialty Hospitals Pvt. Ltd. (ASHPL) is another company included in the Proposed Apollo Acquisition by Kids Clinic India.
ASHPL had three business segments, namely Cradle, Fertility and Spectra, till June 2024.
The proposed combination includes the acquisition of 100% equity shareholding of ASHPL by Kids Clinic India, along with the acquisition of up to 100% equity shareholding of AFCPL.
The CCI has approved the Proposed Combination involving the proposed acquisitions, the issuance of equity shares and optionally convertible debentures to Apollo Health and Lifestyle Limited, and the issuance of certain equity shareholding in Kids Clinic India to Arvon Investments Pte. Ltd.
