Eight parties keen to acquire Lanka Hospitals’ control

• Asiri, Hemas and Sunshine speculated among local firms whilst India’s Apollo and Kauvery figure in overseas interests that includes parties from UK and Malaysia

Eight parties have expressed keenness to acquire the Government’s 51.34% stake in The Lanka Hospitals Corporation.

Daily FT learns of the eight parties responding were several existing firms in the healthcare industry including Asiri and Hemas and the other local firm is Sunshine Holdings. Among foreign parties speculated were India’s Apollo and Kauvery and from the UK and Malaysia.

The deadline for Request for Qualification (RFQ) was on Tuesday and according to SOEs Restructuring Unit (SRU), eight RFQs were received and will be evaluated as per the special guidelines on divestiture of State-Owned Enterprises approved by the Cabinet of Ministers in July 2023.

The RFQs received were considered by the opening committee appointed by the Special Cabinet Appointed Negotiating Committee.

The RFQs were called on 18 October via international and local media from potential investors.

The World Bank’s International Finance Corporation, as Transaction Advisors for the divestiture of the Lanka Hospitals Corporation, will continue to advise the Government.

The divestiture will be completed through a two-stage competitive bidding process.

Quoted on the Colombo Stock Exchange, The Lanka Hospitals Corporation is  367-bed multi-speciality tertiary care hospital and has a network of 23 standalone retail pharmacies in the country in addition to a medical and nursing learning academy. 

In FY22, The Lanka Hospitals achieved its highest ever revenue of Rs. 10.7 billion and an after tax profit of Rs. 3.2 billion. Its total assets were worth Rs. 15.3 billion as at 31 December 2022. Liabilities were Rs. 3.3 billion. Retained earnings amounted to Rs. 8 billion.