Temasek buys majority stake in Manipal health

Other than Manipal Hospitals, Sheares is also an investor in the Kolkata-based hospital chain Medica Synergie, while Temasek holds a 16% stake in Global Health, the operator of Medanta Hospitals.

Temasek, stake in Manipal health, Manipla health enterprises, acquisition, indian express, indian express news

In June 2013, a medical student at Karnataka’s prestigious Manipal University was walking back to her room from the library when she was dragged into an autorickshaw, taken to another location and gang-raped. (Representational/File)

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Marking its largest acquisition in the Indian healthcare space, Singapore government’s investment arm Temasek Holdings 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 group’s portfolio firm Sheares Healthcare Group, which owns and provides healthcare services around the world, sources close to the development said.

Following the acquisition, the fund’s stake has risen to 59% from the earlier 18%, which was held by Sheares Healthcare India. Temasek 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.

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Post the transaction, the stake held by promoter Ranjan Pai and family will fall to 30%. TPG Capital has sold 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.

Temasek and Manipal Health declined to comment.

Following the deal, the 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 the 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 out Bengaluru-based Vikram Hospitals from Multiple Private Equity for around Rs 350 crore. Most 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.

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. FE