NMC healthcare, one of UAE’s largest hospital chains, is in advanced talks to pick up close to 65% stake in Hyderabad-based Sunshine Hospitals for an estimated R400 crore.
According to multiple sources, the transaction which is expected to close in a month’s time from now, will see the exit of Sunshine’s existing investors, which include India-focused private equity firm InvAscent.
The PE fund had invested $15 million in September last year from its healthcare focused India Lifesciences Fund II. Founded in 2009 by noted Orthopaedic surgeon AV Gurava Reddy, Sunshine Hospitals currently operates three super-specialty hospitals in Hyderabad, Cyberabad and Bhubaneshwar.
While emails sent to both Gurava Reddy and NMC group remained unanswered till the time of going to the press, sources said that post the completion of the deal.
Gurava Reddy who owns around 32% in the hospital chain will continue to remain managing director and CEO of the group, while NMS group will come in as a strategic partner with a controlling stake.
Although it could not be immediately ascertained how much stake InvAscent and other investors control in the hospital chain, it is understood that Gurava Reddy is the single largest shareholder.
NMC group was founded by former UAE minister Abdulla Humaid Al-Mazroei and Indian origin businessman BR Shetty in 1975 as the “New Medical Centre” in Abu Dhabi.
It was expanded to a full-fledged hospital in 1981, and further diversified into distribution of FMCG, medical equipment and education.
NMC health has made several acquisitions in the past which include, Clinica Eugin one of Spain’s leading integrated women’s health provider, Dr Sunny Healthcare Group, a chain of medical centres in UAE and Provita and Americare group, which focuses on long term patient care and rehabilitation.
This will be the second investment from UAE-based investors in the healthcare sector in India this year.
In January this year Dubai-based Abraaj Group, an emerging markets focussed private equity group acquired a controlling 72% stake in Hyderabad-based CARE Hospitals from the
private equity owned Advent International for R2,000 crore.
A number of Hyderabad based healthcare chains have seen significant investment activity in the past few months.