Manipal Health Enterprise (MHE) files to High Court to stop Emami group from selling or transferring shares from their AMRI health business to any 3rd party from its 94% of share as per the purchased agreement in place, in June 2022.
Manipal Health Enterprises (MHE) is a leading healthcare giant in India who attracts patients nationally and internationally. Manipal Hospitals to buy the AMRI group of hospitals, owned by Emami Group. AMRI Group owns 4 hospitals, 3 in Kolkata and 1 in Bhubaneswar with about 1150 beds. These hospitals are 98% owned by Emami group and remaining 2% is owned by the West Bengal government.
Why Does Emami Sells AMRI
Emami group has to pull out from the debt amount spent on the inception and operation of the AMRI hospital business. This also helps them to retrieve the properties from pledge.
The group is trying to sell their healthcare wing and concentrate more on the FMCG industries. Manipal Hospitals proposed to close the deal for 1500 core but Emami Ltd estimates more than it.
What led Manipal Hospitals to High Court
As per the purchase agreement signed between Emami group and Manipal hospitals, the former should not sell or transfer stakes from AMRI hospitals as a subject matter during the course of arbitration. The agreement was also attested by the other shareholders and lenders. This led the latter to appeal a petition to HC to secure their 94% in AMRI on Tuesday, November 29. On correspondence to this Justice Yashwant Verma asked AMRI hospitals, Emami ltd and 32 others to respond to the MHE’s petition on December 7th hearing.
Statements from Both the parties
Rishi Agarwala from MHE’s side states that Emami group is malafide and demanded more money than what is agreed and now are in talks with other buyers. Kapil Sibal from AMRI side replied to the charges that there was no agreement between the parties, and it was a contingency contract. It is exposed to get clearance from the West Bengal government, that has not yet been sanctioned thus the hospital can’t proceed. And both agreed to halt any discussion until the hearing on December 7.
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