Temasek buys extra 41 per cent in Manipal Hospitals for Rs 16K cr
As per Statista, Manipal Hospitals had the highest private equity investment of about $286 million in 2021 in the healthcare sector.
Published: 08th April 2023 09:24 AM | Last Updated: 08th April 2023 09:24 AM | A+A A-
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BENGALURU: Singapore-based investment company Temasek Holdings has acquired an additional 41% stake in Manipal Hospitals for about Rs 16,400 crore. With this, Temasek-owned Sheares Health’s stake will increase to 59 per cent in Manipal, and this is said to be the largest private equity deal in the healthcare space.
Currently, Sheares owns an 18 per cent stake in the hospital. Sources confirmed the deal and said the official announcement will be made on Monday. The enterprise value of the hospitals would be Rs 40,000 crore as part of the transaction.
Temasek declined to comment, saying that they would not comment on market speculation, and a mail sent to Sheares did not elicit a response. Apart from Temasek, other stakeholders in Manipal Health Enterprises include TPG and NIIF. Sources confirmed that NIIF is exiting and that Sheares has also purchased stake from promoter family and TPG.
Sheares is wholly-owned by Temasek, and the group invests in and provides healthcare delivery services in Asia, with a focus on China, India, Vietnam, Malaysia, among other countries. It has invested in Northeast Medical Group, Homage, Columbia China and Iora Health, among others. In India, in 2017, the company invested in Ranjai Pai-controlled Manipal Hospitals.
Set up in 1991 as part of the Manipal Education and Medical Group, with a group of 29 hospitals spread in 15 cities, it is the second-largest hospital chain in India. With 8,300 beds, 4,000 doctors, it has an employee strength of over 11,000. It has acquired hospitals such as Columbia Asia and Vikram Hospital. In 2015, TPG acquired a minority stake in the hospital for Rs 900 crore. It also backs Motherhood and Nova IVF. According to Tracxn, Manipal Health Enterprises’ revenue in FY22 stood at Rs 4,084 crore and its profit stood at Rs 541 crore.
As per Statista, Manipal Hospitals had the highest private equity investment of about USD 286 million in 2021 in the healthcare sector. Various reports say hospital industry in India accounts for 80 per cent of total healthcare market, and it is expected to touch USD 132 billion by 2023.
