Temasek Holdings, a Singapore government-owned fund, has acquired an additional 41 percent stake from the promoters and current investors in Manipal Health Enterprises, one of the largest hospital chains in India, according to sources. Sheares Health, a Temasek-owned company, earlier held an 18 per cent in the hospital chain and with the additional 41 percent stake now, its total holding in the company has gone up to 59 percent. The deal has valued the hospital chain at $5 billion, or ₹40,000 crore, according to sources in the company.
While Manipal Health Enterprises declined to comment on the matter, sources said that an official announcement is expected on Monday. Post-transaction, the stake held by Manipal Health promoter Ranjan Pai & family will be reduced from 52 per cent to 30 per cent.
TPG Capital Management, an existing private equity investment in Manipal, has sold 11 per cent of its 22 per cent share, and the National Infrastructure Investment Fund (NIIF), another investor, has completely exited by selling its 8 percent stake in the hospital network, according to sources. Temasek is believed to have picked up rest of the stake from the promoters of the company.
In 1953, the founder of the Manipal Education and Medical Group (MEMG), Dr. TMA Pai, established the Kasturba Medical College in Manipal, Karnataka. Later in 1991, Manipal Hospitals Enterprises came into existence with the launch of its 650-bed flagship hospital at Old Airport Road, Bangalore. Today, the group operates a network of 28 hospitals across 15 cities with more than 7,850 beds in operation.
Interestingly, the transaction comes even as Manipal Hospitals looks to acquire Kolkata’s AMRI Hospitals for about ₹2,400 crore. An agreement is said to have been signed, as it awaits a green signal from the West Bengal government, the official said.