Fortis and Manipal in for a merger??

At the same time, it is reported that TPG currently owns 22% stake in the privately held Manipal and is looking forward to expand its share with one of other private equity investor, True North (formerly India Value Fund) wanting to offload its 18% stake in Manipal. Further with the increase in stake in both, TPG is now looking forward to eventual merger of the two to create one of the largest hospital networks in the country.

HURDLES?

Sources aware of the developments were seen cautioning the daily that consolidation talks are still in early stages, and may not lead to any transaction. The major hurdle in the deal comes due to the fact that Japanese pharma giant Daiichi Sankyo has taken the Singh Brothers to court, to block them  from selling their stake in Fortis Healthcare.

Moreover, recent media reports have also pointed out that Fortis is also in talks with multiple investors

What Happens if the deal goes through?

With the possible merger of the two giants, which are second and third biggest hospital networks in the country, the final entity would be a direct rival in size as well as Market Cap to the country's largest chain of Hospitals- Apollo hospitals. Currently, with an estimated bed capacity of 10,143 beds, Apollo Hospitals stand at an approx Market Cap of Rs 17,000 crore. Fortis Hospitals on the other hand, has an estimated bed capacity of 5100 beds and an estimated market cap of Rs 9,900 crores as per the industry figures. The similar figures for Manipal stands at 4900 beds and a market cap of Rs 6800 crores. With the possible merger of the two, the final giant may surpass Apollo Hospitals both in beds capacity as well as Market Capitalisation

To read the full TOI story, please click on the following link

http://timesofindia.indiatimes.com/business/india-business/tpg-looks-to-combine-fortis-manipal-biggest-healthcare-deal-will-create-rival-to-indias-no-1-hospital-chain-apollo/articleshow/57175028.cms