Apollo Pharmacies Limited agreed to acquire Front End Standalone Pharmacy Business of Apollo Hospitals Enterprise Limited (NSEI:APOLLOHOSP) for INR 5.3 billion on November 14, 2018. The consideration is payable in cash. Apollo Pharmacies Limited will fund the transaction through a private placement of its shares to Apollo Hospitals Enterprise and others for INR 1.4 billion and the remaining through external borrowings of INR 3.8 billion.

Apollo Hospitals Enterprise Limited would be holding 25.5% stake in Apollo Medicals Private Limited. For the year ended March 31, 2018, Front End Standalone Pharmacy Business reported total revenue of INR 32.7 billion. The transaction is subject to statutory, regulatory and antitrust approval.

The transaction is approved by Board of Directors of Apollo Hospitals Enterprise Limited and by National Company Law Tribunal, Chennai Bench. As on September 7, 2019 National Company Law Tribunal, Chennai Bench has directed Apollo Hospitals Enterprise Limited to convene a meeting on its equity shareholders on October 21, 2019 to consider and approve the scheme of arrangement. As of October 22, 2019, shareholders of Apollo Hospitals Enterprise approved the transaction.

As of December 26, 2019, the transaction has been approved by the board of directors of Apollo Hospitals Enterprise. The Competition Commission of India has approved the transaction as of September 23, 2019. As on August 3, 2020, National Company Law Tribunal, Chennai Bench sanctioned the scheme.

B. S. R. & Co LLP acted as valuer, ICICI Securities Limited (NSEI:ISEC) acted as fairness opinion provider and L&L Partners acted as legal advisor in the transaction. Deloitte Haskins & Sells LLP acted as accountant for Apollo Hospitals Enterprise Limited. Sundeep Dudeja, Vaibhav Kakkar, Prashant Shah, Avisha Gupta, Sahil Arora, Ritvika Thakur, Keshav Pareek and Bhavini Singh of L&L Partners acted as legal advisors for Apollo Hospitals Enterprise Limited.