NH announces discontinuation of hospital project in kenya

Narayana Hrudayalaya (NH) through its wholly owned subsidiary in Mauritius, Narayana Holdings Private limited (NHPL), had entered into an agreement in May 2016 with prominent doctors in Kenya and lending financial institutions, viz., Africa Health Fund LLC (AHF) and International Finance Corporation (IFC) for setting-up a 130 bedded hospital in Nairobi, Kenya, to provide affordable and quality healthcare in Kenya and neighboring African countries.

NHPL invested in a minority stake in a Mauritian entity, ISO Healthcare, incorporated for the purpose of funding the project with majority ownership being with AHF. ISO Healthcare, in turn, incorporated a company in Kenya named ISO Health Ltd. for implementing the project. ISO Health Ltd. acquired land and was taking steps for implementing the project, but due to inability of AHF to further provide funds, the project had to be shelved mid-way. ISO Health has decided to dispose the land and return the capital to its shareholder ISO Healthcare and subsequently dissolve the entity (ISO Health Ltd.) after complying with all applicable laws. Thereafter, ISO Healthcare shall distribute the available capital to its shareholders, which includes NHPL.

The carrying value in the project as per consolidated financials of NH as on March 31, 2019, is Rs 29.38 million with NH having invested USD 0.662 million in the same. The realizable value from the discontinuation of the project is dependent on the amount from the sale of the land held by ISO Health Ltd.