APOLLO Hospitals' stake in British American Hospitals -the joint venture between the hospital group and British American Investments which runs the Apollo Bramwell hospital in Mauritius, and Apollo Munich Health Insurance Company (AMHIC) -is set to dilute over 15 per cent, as the group is not much keen on pumping further funds into them.
In both JVs, Apollo had a 20 per cent holding earlier. In AMHIC, the stake has come down to 16.71 per cent and in the Mauritius hospital it is 19.72 per cent, a senior company official told Financial Chronicle.
British American Hospitals had opened the Mauritius hospital last year. Till now, the group has invested Rs 22 crore in this project and it will not be putting any further funds into it.
British American Investments has been investing on further expansion of the hospital that is a 200-bed multi-specialty hospital.
The total project cost is estimated to be Rs 450 crore.
"By virtue of investing no more into the project, Apollo's stake has been coming down. Within four or five years it would come down and stay around 15 per cent as necessitated by the JV agreement," the official said.
Lately, Apollo has been concentrating on investing in domestic projects as it sees the market more vibrant here. Projects abroad, including the Mauritius one is expected to take a longer duration to breakeven compared to domestic projects.
According to company insiders, there is so much in hand for Apollo in the domestic market itself. Apollo had exited from the Sri Lankan and Dubai JVs a few years back.
Similarly, the company will also lower its stake in Apollo Munich Health Insurance Company to 15 per cent from 20 per cent held earlier while the promoter family will up its share. The promoter family as well as the German insurance company Munich Re will make further investments in the JV. Munich Re holds 24 per cent, Apollo Hospital Enterprise 16.71 per cent and the rest by the promoter family at present.
