InvestorQ : Why has proxy advisory firm, SES, objected to the Apollo Hospitals business transfer?
rhea Babu made post

Why has proxy advisory firm, SES, objected to the Apollo Hospitals business transfer?

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Riya Dwivedi answered.
4 months ago
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After making a splash with their strong arguments in the PNB Carlyle case, proxy advisory firm, Shareholder Empowerment Services or SES, has now targeted Apollo Hospitals. SES, promoted by former SEBI ED, J N Gupta, has raised concerns over the proposed sale of Apollo Hospitals pharmacy and associated businesses to a wholly-owned subsidiary. The rationale for the concerns raised by SES has to do over fair valuation and conflict of interest.

Under the terms of the deal, the pharmacy division is proposed to be transferred to Apollo HealthCo. However, SES is of the view that the plan to subsequently bring investors into Apollo Health would dilute shareholder interests. In addition, SES has also red-flagged concerns like lack of transparency in the valuation, absence of independent valuation and the existence of cross holdings and conflict of interest among both the companies.

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