Business & Finance
Medicover accelerates and increases investments in Maxcure in India
5 January 2018 -

Medicover AB (STO:MCOVB), a healthcare and diagnostic services company, announced on Thursday an increase in its investments in the Indian hospital chain MaxCure ahead of previous discussed timetables.

Reportedly, the initial ownership of 22% has been increased to 26.8% through an injection of new capital of EUR2.6m. Also, this ownership is expected to be increased shortly to 37.2% via a secondary share purchase of EUR3.4m and an adjustment of share capital structure. This investment brings the total cost of current ownership in Maxcure to EUR16.6m.

MaxCure is expected to use the additional funds to expand existing hospital sites, acquire a minority in an existing subsidiary and acquire another hospital site bringing the total number of sites to ten from previous nine.

According to Medicover, it accelerated part of the investment scheduled for later this year to support the business' growth. The remaining balance of EUR6.6m for 2018 is expected to be invested later this year.

Medicure added that the business is developing well with revenues for the MaxCure Group of approximately EUR55m for calendar year 2017. This investment is a part of the earlier disclosed plans and will not change the total net investment in MaxCure in order to reach 51% ownership.