Financial Times - Apollo to respond to CSE

Apollo to respond to CSE

Lanka Hospitals Company Limited (LHCL) will respond to the Colombo Stock Exchange (CSE) this week clarifying the details of the incentive package offered by the Board of Investment (BOI) to the Apollo hospital.

LHCL Vice Chairman R. Navaratnam told The Sunday Times FT that the company received the letter on Thursday and will be writing to the CSE in the next few days after consulting with the other directors of the company.

The CSE requested information on whether BOI had granted their incentives to a ‘particular set of investors’ or to the company itself.

CSE said it considers this as material information.

“What they want to find out is whether the BOI incentives were given to Dr. Reddy and family or to the Apollo Hospitals.

None of this has been stated in the initial public offering (IPO) prospects,” an industry source said.

Navaratnam said that the holding company of Apollo is LHCL and that the initial prospectus for the initial public offering (IPO) speaks only about Apollo Hospitals.

“The prospectus speaks about Apollo Hospitals throughout and not LHCL,” he said. SLIC is currently the largest shareholder of the company, while Apollo Hospitals Enterprises of India owns only 33 percent, with a Director of the Company also owning three percent.

The third largest shareholder is the state owned, but listed Property Development (PDL) with a three percent stake.

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