Vijaya Diagnostic Centre and Medinova Diagnostic Services announce merger to enhance diagnostic services

TAGS

In a significant move in the healthcare industry, Vijaya Diagnostic Centre Limited (VDCL) and Medinova Diagnostic Services Limited (MDSL) have announced their amalgamation. This merger, approved by the Board of Directors of both companies, aims to consolidate their operations and create synergies, enhancing value for all stakeholders involved.

The scheme of amalgamation will see MDSL merge into VDCL, with MDSL being a subsidiary where VDCL holds a 62.14% equity stake. This strategic move is expected to integrate the extensive range of diagnostic services provided by both entities, covering pathological investigations, radiology and imaging, and diagnostic cardiology. The merger is anticipated to complete within 9 to 12 months, pending approvals from various regulatory bodies including the Stock Exchanges, SEBI, National Company Law Tribunal, ROC, and the respective shareholders and creditors of the two firms.

See also  ImmersiveTouch launches ImmersiveView 3.0 VR imaging platform for radiology

The combined strengths of VDCL and MDSL will lead to enhanced integrated diagnostic services, increased efficiency through shared resources, and better cash management. These synergies are expected to result in cost savings, elimination of duplicate functions, and maximization of shareholder value. Moreover, the amalgamation aims to simplify the overall group structure, creating efficiencies and promoting enhanced value for stakeholders.

See also  GPT Healthcare reports strong Q3 FY24 performance, showcasing continued growth

For every 22 equity shares held in MDSL, public shareholders will be issued 1 equity share of VDCL, aligning interests and ensuring a fair and equitable merger process. This strategic initiative is supported by thorough valuation reports from SSPA & Co. Chartered Accountants and CA Prashant Ghorela, with fairness opinions provided by Kunvarji Finstock Private Limited and Fortress Capital Management Services Private Limited.

See also  Quest Diagnostics to acquire LifeLabs for $985m in strategic expansion into Canada

This merger represents a proactive approach to address the competitive demands of the healthcare diagnostic sector. By pooling their resources and capabilities, VDCL and MDSL are set to not only enhance their service offerings but also strengthen their market positioning significantly.


Discover more from Business-News-Today.com

Subscribe to get the latest posts sent to your email.

CATEGORIES
TAGS
Share This