INDIA – Entrepreneur GSK Velu, founder and chairman of Neuberg Diagnostics, is reportedly exploring a bid for diagnostic chain Metropolis Healthcare, a company he once co-funded.

Last month, HealthCare Africa Magazine had reported that Metropolis Healthcare Limited, a diagnostics chain operating in India and Africa, is looking to raise more than US$300 million and bring onboard a strategic partner by selling a significant minority stake.

Velu’s bid to buy it back comes seven years after he exited from the company following a tussle with the other co-founders, the Shah family. 

According to a report by The Economic Times, Velu is in talks with several investors including two large private equity funds and half a dozen banking firms to raise money for his bid after Metropolis Chief Executive Ameera Shah and her family initiated the formal process to sell the promoter stake.

Apart from Velu, Amazon, Walmart and Flipkart are also exploring bids for Metropolis Healthcare Limited.

Velu, the founder of Trivitron Healthcare Group and Maxivision Eye Hospitals, is believed to be in talks with a bunch of investors, including two large private equity funds and half a dozen banking firms, to raise money to finance his bid for the diagnostics chain.

Velu is definitely exploring a bid, although it’s still unclear whether he would be able to clinch the transaction. He is definitely looking to bid for the asset if the Shah family is completely exiting from the venture,” one of persons in the know told the publication.

Metropolis chief executive A meera Shah and her family has initiated a formal process to sell part of the promoter stake and is understood to have hired investment bank Barclays to initiate a formal sale, said sources. Shah family owns 50% stake in Metropolis.

According to Economic Times report, GSK Velu, the founder of Trivitron Healthcare, is believed to be in talks with a bunch of investors, including two large private equity funds and half a dozen banking firms, to raise money to finance his bid for the diagnostics chain.

The deal is said to be valued at approximately Rs 7,800 crore (US$1 billion).

Meanwhile, billionaire Gautam Adani and India’s biggest hospital operators, Apollo Hospitals Enterprise Ltd are assessing bids to take a majority stake in Metropolis Healthcare Ltd, Business Standard reported.

Adani and Apollo’s deal with Metropolis could be at least worth US$1 billion or Rs 7,765 crore, given the market capitalization of the diagnostic chain and its operations, Mint reported quoting two people familiar with the matter.

This comes after the Adani Group, one of India’s largest business conglomerate, last month announced its foray into the healthcare sector and reports suggested that it is planning to acquire large hospitals and diagnostic assets.

Adani Enterprises in May said it has incorporated a wholly-owned subsidiary, Adani Health Ventures (AHVL), for this purpose.

To gain a foothold in the sector, Adani Group has reportedly earmarked US$4 billion for the business.

The Adani Group, which has more than US$20 billion in annual revenue, is also interested in entering the pharmacy space, through both online and offline routes, reports suggested.

In the last 8 years, the Adani Group has acquired 30 different entities in different sectors, including in power, green energy, infrastructure, airports and food processing.

Metropolis Healthcare Ltd started in 1980s as just one lab. The diagnostic chain currently operates in 19 states across India.

Apart from Velu, Amazon, Walmart and Flipkart are also exploring bids for Metropolis Healthcare Limited.

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