Apollo Hospitals Group Set for Major Restructuring with CCI Approval

The Competition Commission of India (CCI) has given the green light to a multi-tiered restructuring initiative involving Apollo Hospital's group entities, which includes Apollo Healthco, Keimed, and Apollo Healthtech Ltd. This decision follows Apollo Hospitals Enterprise's June announcement that its board had endorsed a separate listing of its pharmacy and digital health operations within the next 18-21 months in a bid to unlock value.

The approved restructuring, which will take place over several phases, involves a composite scheme of arrangement approved by the boards and audit committees of the Apollo group earlier this year. The plan starts with demerging an identified business unit from Apollo Health Enterprise Ltd into Apollo Healthtech Ltd. Next, Apollo Healthco Ltd and Keimed Pvt Ltd will merge into Apollo Healthtech Ltd, consolidating health and distribution operations.

Upon completion of these actions, equity shares of Apollo Healthtech Ltd will be publicly listed. The final phase involves Apollo Healthtech Ltd acquiring a 74.5% stake in Apollo Medicals Pvt Ltd through a share purchase agreement. According to Suneeta Reddy, MD of Apollo Hospitals Enterprise, the reorganization allows shareholders direct investment in India's largest omnichannel pharmacy and digital health platform.

(With inputs from agencies.)