Financial Times

New Delhi: Chennai-based Apollo Hospitals Group said last week it has decided not to sell its holdings for the time being in the Sri Lankan joint venture, which is under a takeover bid.

"At this point in time, Apollo has decided that it will not sell its holdings. Apollo has appointed merchant bankers in Sri Lanka to explore all options before suitably responding to this situation," Apollo Goup Finance Director Suneeta Reddy told PTI from Chennai.She said the hospital and healthcare chain was yet to take a decision on how it would respond to the open offer from Sri Lanka Insurance Corporation Ltd. (SLIC), which has hiked its stake in the Lanka Hospital to 36.07 per cent. Reddy also clarified that the group was "extremely happy operating our facility in Colombo".

Last month SLIC acquired an additional 16.21 per cent stake through Colombo Stock Exchange in the hospital adding to its earlier holding of 19.85 per cent.

As a result of this acquisition, SLIC had triggered the Take Overs and Mergers Code 1995 requiring it to make an open offer for acquiring all shares of all shareholders at a price of SLR 28. Currently the Apollo group holds 32.92 per cent in Lanka Hospital.