Metropolis Healthcare jumps after diagnostic service providers Rs 247-crore Core Diagnostics acquisition
Diadnostic service provider Metropolis Healthcares shares rose on Tuesday after the companys board approved the acquisition of Core Diagnostics from Core Diagnostics (Mauritius) for a consideration of Rs 247 crore. After the transaction is completed in 60 days, Core Diagnostics will become a wholly owned subsidiary of Metropolis.
Metropolis Healthcare Share Price: Metropolis Healthcare shares registered sharp gains on Tuesday after the Mumbai-headquartered diagnostic service provider's board gave the nod to the acquisition of Core Diagnostics from its shareholder Core Diagnostics (Mauritius) for a sum of Rs 247 crore. The Metropolis Healthcare stock gained by as much as Rs 63, or 2.9 per cent, to Rs 2,250 apiece in the first half of the session.
However, the stock gave up much of its intraday gains after the initial spike. At 11:30 am, Metropolis shares were left with a gain of 0.8 per cent at Rs 2,204.3 apiece on the bourse.
Metropolis Healthcare shares have already risen about 32 per cent so far this year, outperforming the overall market given the headline Nifty50 index's 13 per cent gain.
Here are key things to know about the Metropolis Healthcare-Core Diagnostics deal:
The deal is set to be completed in 60 days, according to a regulatory filing.
The deal involves the entire paid-up equity of Core Diagnostics, which means that after the completion of the acquisition, Core Diagnostics will become a 100 per cent subsidiary of Metropolis Healthcare.
ALSO READ: Metropolis Healthcare to acquire Core Diagnostics for Rs 247 crore
Metropolis Healthcare has said that the strategic acquisition will enhance its advanced cancer testing capabilities as well as strengthen its footprint in northern and eastern parts of the country.
Metropolis aims to expand its market reach and enhance its specialised testing offerings portfolio by leveraging Core Diagnostics' strong relationships with leading cancer specialists and hospitals in these regions, according to the filing.
What is Core Diagnostics and what does it do?
Core Diagnostics is a clinical data science company.
Founded in 2012, Core Diagnostics operates in 200 cities in India.
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