New Delhi, Jul 10 (PTI) Diagnostic chain Metropolis Healthcare on Saturday said Dr Ganesan's Hitech Diagnostic Centre does not seem to be intending to close the acquisition agreement with the company and so it will take appropriate actions in this matter.
Metropolis Healthcare board had approved the acquisition of Dr Ganesan's Hitech Diagnostic and its subsidiary Centralab Healthcare Services on January 17, 2021 in a combination of cash and equity shares deal, it said in a regulatory filing.
To achieve the closure of the transaction, the company had taken shareholder and other necessary approvals, it added.
"However, through delays in the completion of the sellers' obligations under the Share Purchase Agreement (SPA), the transaction as contemplated under the SPA was initiated but has not been wholly consummated till date," Metropolis Healthcare said.
The company, since the 3rd/4th week of April 2021, through various discussions and correspondences has been trying to conclude the said transaction with the sellers under the SPA, it added.
"A letter was also issued on July 5, 2021 to the sellers asking them to fulfil their obligations under the SPA and communicate to the company on the said transaction, failing which it will be considered as a confirmation by the sellers of their intention to terminate the transaction without prejudicing the rights of the company under the SPA," the filing said.
In the view of no communication from the sellers to the letter, it can be assumed that they are not intending to close the transaction, it added.
"The company is presently evaluating its rights, and the various routes available for their enforcement, and will accordingly take appropriate actions on this matter," Metropolis Healthcare said.
On January 17, Metropolis Healthcare had said it will acquire Dr Ganesan's Hitech Diagnostic Centre in a cash and stock combination deal, to strengthen its leadership position in southern India.
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