Khazanah fund picks up 9% in Apollo

Written by P Vinod Kumar | Chennai | Updated: Mar 25 2011, 15:43pm hrs
Integrated Healthcare Holdings, a fund managed by Singapores sovereign wealth fund Khazanah, has picked up an 8.82% stake in Chennai-based Apollo Hospitals Enterprises in an off-market deal. According to market sources, the Khazanah fund has bought the stake in the corporate hospital chain from its sister fund Bisikan Bayu Investments. Though the consideration paid by Integrated Healthcare Holdings was not immediately known, analysts put the deal size at around the R500 crore. The Apollo stock is currently trading at R500 levels and the stock had logged a 52-week high of R845.95 and a 52-week low of R408.

Apollo Hospitals, in a regulatory filing on Thursday, said that Healthcare Holdings had bought 1.10 crore shares in the corporate wellness chain in an off-market deal. This roughly works out to be 8.82% of the outstanding paid-up equity share capital of the Apollo Hospitals Enterprises.

The deal is unlikely to have any material impact on the ownership structure of Apollo since it is a transfer of shares from one Khazanah fund to another, an analyst tracking the stock told FE. As of the quarter ending December 2010, the Singapore government-owned sovereign investment fund, through its investment arm Bisikan Bayu Investments, a Mauritius-based foreign institutional investor, registered with the Securities and Exchange Board of India (Sebi) was holding a tad over 12% stake in Apollo Hospitals, making it the second largest non-promoter stake holder the hospital chain. Apax Partners, through its two funds Apax Mauritius Fdi One and Apax Partners Europe, holds 13.66% stake in the hospital group, making it the single largest non-promoter share holder in the hospital chain while Emerging Markets Growth Fund holds 1.96%.

CLSA (Mauritius) is the third largest non-promoter stakeholder with 6.86%. International Finance Corporation (Washington) holds 1.03% while the public sector insurer Life Insurance Corporation (LIC) has 1.46%. Khazanah, through its investment arm Integrated Healthcare Holdings, had recently won a major corporate takeover battle against the Fortis Group for a 100% stake in Singapores Parkway Hospitals.Integrated Healthcare has bought all the shares in Parkway that it was not already owning at a price of S$3.95 per share in an all cash deal.