Temasek buys 41 percent stake in Manipal Health for USD 2 billion
Bangalore: In the largest deal in the Indian healthcare space, Singapore-based investment firm Temasek has signed definitive agreements to acquire an additional 41% stake in Manipal Health Enterprises (MHE) for more than USD 2 billion.
Though the companies did not share financial details of the deal, sources told PTI that Temasek stake buyout would be for over Rs 16,300 crore valuing Manipal Health Enterprises (MHE) at around Rs 40,000 crore, making it the largest deal in the Indian healthcare sector.
Following the closing of the transaction, Manipal Group will hold about 30% of MHE. Sheares Healthcare Group, a wholly-owned subsidiary and independently-managed portfolio company of Temasek, will retain its existing 18% stake. Leading global alternative asset management firm TPG, which first invested in MHE through TPG Asia VI in 2015, will fully exit, but it will hold an interest of 11% in MHE, through its new Asia fund - TPG Asia VIII. National Investment & Infrastructure Fund (NIIF) will exit its holding from MHE.
Also Read: Kasturba Medical College Signs MoU With CSIR-CDRI For Research Work On Antimicrobial Resistance
Temasek-owned Sheares Healthcare, which already owned 18% in Manipal, has bought an additional 41% stake from the promoter group, Dr Ranjan Pai & family, and other existing investors, taking its stake to 59%. The deal values the company at USD 5 billion, sources told TOI. The transaction is awaiting the competition commission's approval.
Dr. Ranjan Pai, Chairman of Manipal Group, said, “We are very glad for Temasek’s acquisition of a significant stake in Manipal Health Enterprises and its support to the management team in building out the platform to its full potential. Investing in healthcare requires a long-term outlook as well as a sensitivity to social responsibility. I am glad that we have partners like Temasek and TPG who resonate with these values and will continue to be a part of the journey ahead. I am also grateful to NIIF who partnered with us at a critical juncture, at the peak of the Covid-19 pandemic and supported us as we continued to provide high-quality healthcare.”
Puneet Bhatia, Co-Managing Partner of TPG Capital Asia, said, "Since our investment in 2015, we have witnessed Manipal’s transformational journey of becoming one of the largest, best-managed and patient-centric healthcare networks in India. By re-investing through our new Asia fund – TPG Asia VIII, we look forward to continuing to support Manipal’s mission of bridging the quality healthcare infrastructure gap in the country.”
Padmanabh Sinha, Executive Director and Chief Investment Officer, Private Equity of National Investment and Infrastructure Fund said, “NIIF, through its Strategic Opportunities Fund (SOF), is pleased to have played an important role during the growth journey of Manipal Hospitals. The company demonstrated exceptional performance and following our investment, it successfully executed a transformational acquisition that catapulted Manipal Hospitals to become a segment leader in the Indian healthcare services space. We made this investment when elective procedures and medical tourism were at a standstill due to the pandemic, and the timing of recovery was uncertain. Our investment in Manipal is a good example of SOF’s strategy to invest in high-growth businesses which can become market leaders in India.”
Manipal Hospitals, is headquartered in Bengaluru and has a pan-India presence. Currently, it serves over fifty lakh patients a year through its network of 29 hospitals. Allegro Capital Private Limited acted as the financial advisor on this transaction.
