Singapore’s Temasek Holdings purchased a majority stake in Bengaluru-based Manipal Health Enterprises for more than $2 billion in the largest deal in the Indian healthcare sector.
Sheares Healthcare, a Temasek-controlled company that already owned 18% of Manipal, has increased its ownership to 59% by purchasing a further 41% interest from the promoter group, Dr. Ranjan Pai & family, and other existing investors. Sources informed TOI that the deal gives the corporation a $5 billion valuation. The permission of the competition commission is still pending for the transaction.
According to the sources, after the transaction, Dr. Ranjan Pai and his family’s investment will decrease from 52% to 30% while that of current investor TPG will decrease from 22% to 11%. National Investment and Infrastructure Fund (NIIFL) acquired a 9% share in Manipal Hospitals two years prior with an investment of Rs 2,100 crore. According to sources, NIIF is offloading all of its equity in the deal.
Temasek’s representative told TOI when the company was contacted: “As a matter of policy, Temasek does not comment on market speculation.” Manipal Health Enterprises stated that it has nothing else to add.
The hospital network currently has 8,300 beds spread across India; however, with three greenfield projects—two in Bengaluru and one in Raipur—under construction, that number will rise to 9,200. Over the following 18 months, the two hospitals in Bengaluru are anticipated to be finished. AMRI’s agreement will result in 1,300 more beds. This will bring the total to 10,500 beds.
Source: The Times of India