Healthcare Global Enterprises Ltd. · NSE:HCG
Healthcare Global Enterprises — Merger or Acquisition (June 2024)
9 slides from Healthcare Global Enterprises's merger presentation, Jun 28, 2024
Slide 1: Exchange intimation letter on investor presentation for acquisition
June 28, 2024 The Manager - Listing The Manager - Listing National Stock Exchange of India Limited, BSE Limited, Compliance Department, Compliance Department, Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East), Mumbai - 400051, Dalal Street, Mumbai - 400001, Maharashtra,
Slide 2: Acquisition of MG Hospital, Vishakhapatnam
STRICTLY PRIVATE AND CONFIDENTIAL CONFIDENTIAL Acquisition of MG Hospital, Vishakhapatnam June 2024 1
Slide 3: Executive Summary: MG Hospital Acquisition (1/2)
CONFIDENTIAL Executive Summary: MG Hospital Acquisition (1/2) Market Opportunity Consolidation Opportunity Track Record of M&A Pillars of HCG has a successful track record of Significant presence of single location HCG’s M&A India is a $3.1b cancer care services facilities run by local doctors with
Slide 4: Executive Summary: MG Hospital Acquisition (2/2)
CONFIDENTIAL Executive Summary: MG Hospital Acquisition (2/2) Leveraging Synergies & Cross Driving Digitization and Value Unlocking Capacity for Growth Learnings Creation Initiatives • HCG along with MG Hospital’s • Procurement: HCG’s advantage of • Ramp-up digital marketing which management will wo
Slide 5: Snapshot of MG Hospital
CONFIDENTIAL Snapshot of MG Hospital Comprehensive cancer care hospital in Vishakhapatnam - #1 city in Andhra Pradesh, region with 95mm ✓ population, $185bn GDP Well-built hospital infrastructure: 196 operational beds facility (including 25 day care, ICU, and post operative ✓ beds) ✓ Strong medical
Slide 6: Promising Levers
CONFIDENTIAL Promising Levers Constant drive towards digitization and value creation initiatives ✓ HCG started digital marketing ~2 years ago; MG Hospital too did the same – this contributes to ~3-3.5% of the revenue within 18-24 months since launch ✓ Similar to HCG, tracking mechanism in place to a
Slide 7: Attractive Financial Profile
CONFIDENTIAL Attractive Financial Profile ⚫ Upper tier EBITDA margin driven by: Operating Metrics (as of FY23) — Material Margin: MG Hospital has well developed Medical Infra (# of Beds / LINACs / OTs / Doctors) 196 / 2 / 4 / 31 oncology and BMT program, which leads to a higher material margin Reven
Slide 8: Transaction Structure and Governance
CONFIDENTIAL Transaction Structure and Governance Transaction Structure Governance ⚫ Current deal values MG Hospital at INR 4,140 m of EV ⚫ Dr. Murali will be continue as MD and Chief Medical Director role ⚫ 85% stake purchase structured in 2 tranches: ⚫ HCG will take board and management control of
Slide 9: Disclaimer
CONFIDENTIAL Disclaimer This document ("Material") has been prepared by Healthcare Global Enterprises Ltd. (“Company”), solely for informational purposes. The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not pur
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