In the biggest private equity deal in the healthcare sector in India, Temasek Holdings, Singapore government’s investment arm, has acquired an additional 41% stake in Manipal Health Enterprises for an enterprise value of Rs 40,000 crore.
The deal was executed through Temasek-owned Sheares Healthcare Group’s Indian arm, which owns and provides healthcare services around the world, sources close to the development said.
Following the acquisition, Sheares Healthcare India holds the majority stake of 59% from the earlier 18%. It has acquired the stake from promoters and other investors such as TPG Capital Management and National Infrastructure Investment Fund (NIIF), an investment platform anchored by the Indian government, sources close to the development said.
The deal is expected to be announced “anytime soon”, they said.
Post the transaction, the stake held by promoter Ranjan Pai and family will fall to 30%. TPG Capital has sold an 11% stake or half of its total 22% stake in the hospital chain, while NIIF has fully exited by selling its 8% stake.
TPG had invested $146 million in Manipal Health Enterprises in 2015 and had stayed invested since then. NIIF had invested Rs 2,100 crore in lieu of an 8% stake in the hospital chain through its Strategic Opportunities Fund in April last year. KKR & Co, another private major, was also in the race, they added.
“As a matter of policy, Temasek does not comment on market speculation,” Temasek said in an email response. Manipal Health also declined to comment.
Following the deal, the hospital chain is likely to shelve its plans for an initial stake sale. Bengaluru-based Manipal Health was mulling an IPO after it closed a deal to acquire Emami Group’s AMRI Hospitals.
Other than Manipal Hospitals, Sheares is also an investor in Kolkata-based hospital chain Medica Synergie, while Temasek holds a 16% stake in Global Health, the operator of Medanta Hospitals.
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Manipal Health Enterprises has been looking at expanding operations through acquisitions. Earlier, in 2020, it acquired the Columbia Asia Hospitals’ Indian assets for Rs 2,100 crore, and later in June 2021, it bought Bengaluru-based Vikram Hospitals from Multiple Private Equity for around Rs 350 crore. Recently, it acquired Kolkata-based Advanced Medical Research Institute Hospitals, in which the West Bengal government owns about 2% stake, in a deal worth Rs 2,400 crore.
At present, the network is estimated to have 8,300 beds across 29 locations.
Manipal Health was also in advanced stages of negotiations to acquire nearly 70% stake in KIMS Health Management, a Kerala-based hospital chain from private equity investor True North.