Emami may seal AMRI sale to Manipal Group this month

economictimes.indiatimes.com:

Emami Group expects to conclude the sale of its hospital business, AMRI Hospitals, this month to Manipal Group for about '2,400 crore, after months of negotiations and legal battles, said industry executives. About '1,650 crore of the proceeds of the deal will be utilised for servicing the existing debt of AMRI Hospitals which will make the business completely debt-free, the executives told ET on condition of anonymity. The balance proceeds will help the promoters reduce their share pledge in the flagship fast-moving consumer goods (FMCG) company Emami to almost 18% from 33%, they said.

Queries emailed to Emami and Manipal remained unanswered till press time. Emami vice chairman and wholetime director Mohan Goenka told analysts on the company's first quarter earnings call that the company was «very optimistic» that the sale transaction of the hospital business «should be completed by this month-end». Goenka said after the transaction «complete pledge will not go away».

«It should be in the range of about 18% to 20%, depending on the share price. And presently it is at 33%,» he said.Emami Group owns 98% in AMRI Hospitals, which runs four units — three hospitals in Kolkata and one in Bhubaneswar — with a capacity of 1,200 beds. AMRI Hospitals also has a prime parcel of land in Rajarhat on the eastern fringes of Kolkata where a 400-bed hospital can be set up.

All these assets will be part of the deal. The balance 2% stake in AMRI Hospitals is held by the West Bengal government, which will retain its holding. As per filings to the BSE, the Emami promoters — Agarwal and Goenka families of Kolkata — own 54.52% in Emami.