The majority stakes of STS Holdings (STS), owner of Apollo Hospitals Dhaka, is set to be taken over by the UK’s CDC Group (CDC), said a press release yesterday. 

The press statement did not mention the ratio of shares and the value of transaction.

However, it said the transaction is expected to close in the first half of 2020.

The investment, made through the Evercare Health Fund, includes financing from CDC Group, a development finance institution owned by the UK government, and support from The Rise Funds.

“As we seek to improve health outcomes for patients, Evercare and CDC are the right partners to help expand our work in Bangladesh,” said Bob Kundanmal, chairman of STS.

Commerce Minister Tipu Munshi is a director of STS Group, which also owns the International School Dhaka.

“They will provide the expertise and resources required to strengthen our model and drive enhanced specialist services and quality health outcomes in the underserved market in Bangladesh.”

Founded in 2005, STS operates a 425-bed multi-disciplinary hospital in Dhaka with healthcare providers across 29 specialties and is currently developing a new, 400-bed facility in Chittagong.

STS joins the Evercare network of hospitals that operate across South Asia and Africa and will provide immediate additional scale to the Evercare platform, significantly increasing the number of patients served, said the press release.

As part of the Evercare platform, STS will continue to strengthen the healthcare infrastructure in Bangladesh.

By being able to tap into the cross-regional Evercare platform and capabilities, STS will seek to streamline procurement, enhance clinical capabilities and optimise its operations, ultimately strengthening its quality of care, said the statement.

In addition to its existing hospital, STS’s new Chittagong facility will further expand their reach.

“Evercare exists to serve emerging markets that need access to quality, comprehensive care that seeks to improve patient outcomes while reducing costs and increasing efficiency,” said Andrew Currie, chief operating officer of Evercare, in a press statement issued on January 25.

“STS’ strong foothold in the Bangladesh market, quality facilities and services, and strategic and operational alignment with the Evercare network make it a perfect complement to our growing platform in Africa and South Asia.”

There is a clear need to improve the quality and availability of healthcare in emerging markets, including Bangladesh, said Matthew Hobart, managing partner of Healthcare Investing for The Rise Funds.

With the latest diagnostic, medical and surgical facilities and commitment to education and research, STS has the potential to drive positive, measurable and sustainable impact for individuals across Bangladesh, he added.

CDC plans to invest up to $2 billion in Asia over the coming years and Bangladesh will play a key role in this, said Srini Nagarajan, managing director and head of Asia CDC Group.

o3 Capital served the exclusive advisor to STS and its shareholders in this transaction.