PE Firms Vie for Yatharth Hospitals in Major Healthcare Deal

Advent International and Blackstone, backed by Aster DM Quality Care, are reportedly in advanced negotiations to acquire a controlling stake in Yatharth Hospitals and Trauma Care Services. This move signifies a significant consolidation within India's healthcare sector, driven by substantial private equity interest.

Yatharth Hospitals, a specialty hospital chain primarily focused on North India, has experienced a notable stock increase of 15.3% over the past month, reaching a new 52-week high. Promoters Ajay Kumar Tyagi and family, along with Kapil Kumar, currently own 55.8% of the company.

A potential transaction would necessitate an open offer for an additional 26% of Yatharth's shares. Due diligence is nearing completion, and while promoters might retain a minor stake, the final terms are still under discussion. Despite the ongoing talks, Yatharth has officially denied any sale discussions, and Blackstone has also denied current interest.

Headquartered in Noida and Greater Noida, Yatharth operates nine hospitals with over 2,800 beds and aims to expand to over 5,000 beds within three years. Advent International, a frequent investor in Indian pharmaceuticals, is exploring opportunities in the hospital sector, particularly in Delhi-NCR.

Meanwhile, Aster DM Quality Care, formed by a merger of Aster DM Healthcare and Quality Care India, is a major healthcare chain with about 40 hospitals across 27 cities. It aims to scale its bed capacity significantly, with ambitions to become the number one healthcare chain in India within three to four years. Aster DM Quality Care prefers cash deals for consolidation and expansion.