INDIA – Singapore-based sovereign wealth fund Temasek has increased its stake in Manipal Health Enterprises (MHE) by 41%, becoming the majority shareholder in India’s foremost hospital chain.
These latest shares were acquired from several parties including TPG Capital Management, Manipal Founder Ranjan Pai’s family, and India’s National Investment and Infrastructure Fund in a buyout deal valued at US$2 billion.
Commenting on the deal, Puneet Bhatia, Co-Managing Partner & Country Head, India of TPG Capital Asia, said: “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.”
Ranjan Pai’s family shareholding will reduce from about 50% to 30% while private equity firm TPG will fully exit Manipal but hold an 11% stake in the hospital chain through its TPG Asia VIII.
”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,” Manipal Group Chairman Ranjan Pai said in the statement.
With the latest acquisition, Temasek has upped its shareholding in Manipal Health Enterprises to a 59% controlling stake, adding 41% to the 18% stake its healthcare division already owned.
According to the official statement, Temasek’s Sheares Health unit, which recently made its first investment in mental healthcare in Asia, already held 18% of Manipal.
This news comes as the global investment company is expanding its presence in of India’s healthcare sector with mergers and acquisitions including investments in Dr. Agarwal’s Eye Hospital.
Temasek plans to invest in financial services, technology, healthcare, infrastructure, retail, and fast-moving consumer goods.
With the latest share purchase, Temasek won over major buyout giants including KKR & Co and Baring Private Equity Asia who were in talks to buy shares in Manipal.
This takeover deal aligns with Manipal Health’s vision to deliver world-class healthcare services and treatment at a reasonable cost.
“Investing in healthcare requires a long-term outlook and a sensitivity to social responsibility. I am glad we have partners like Temasek and TPG who resonate with these values and will continue to be a part of the journey ahead,” noted Chairman of Manipal, Ranjan Pai.
Headquartered in Bengaluru, Manipal Health Enterprises runs a chain of 29 hospitals under the brand name ‘Manipal Hospitals’ in 16 cities, serving over 5 million patients yearly.
Following Temasek’s share purchase, Manipal Health Enterprises has a current valuation of about Rs 40,000 crores (US$2,991,772,600), making it the largest deal in the Indian healthcare sector.
This move follows the growing trends in India’s healthcare sector, including the sale of a 4% stake in Aster DM Healthcare for nearly Rs 460 crores (US$55,991,706 million) to Dr. Moopen’s family in February this year.
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