BENGALURU: Manipal Health Enterprises (MHE) on Monday announced that Singapore-based Temasek Holdings has signed definitive agreements to acquire an additional 41 per cent stake in Manipal Hospitals.
This is the largest deal by a private equity fund. This newspaper on Friday reported the deal details and Temasek has acquired the stake for over Rs 16,000 crore, valuing the hospital chain at about Rs 40,000 crore. Temasek is an investment company with a net portfolio value of $297 billion as of 31 March 2022.
Following the closing of the transaction, Manipal Group will hold about 30 per cent of MHE. Sheares Healthcare Group, a wholly-owned subsidiary and independently-managed portfolio firm of Temasek, will retain its existing 18 per cent stake.
Alternative asset management firm TPG, which first invested in MHE via TPG Asia VI in 2015, will fully exit, but will hold an interest of 11 per cent in MHE, through its new Asia fund - TPG Asia VIII. Founded in San Francisco in 1992, TPG has USD 135 billion assets under management.
National Investment & Infrastructure Fund (NIIF) will exit its holding from MHE. It had an 8 per cent stake in the hospital chain. Dr. Ranjan Pai, Chairman of Manipal Group, said, “Investing in healthcare requires a long-term outlook as well as 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.”
Puneet Bhatia, co-managing Partner 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 quality healthcare infrastructure gap in the country.” Bengaluru-headquartered Manipal Hospitals currently serves over 5 million patients a year through its network of 29 hospitals.
All about the deal
Manipal Group to hold 30 per cent of the hospital chain
TPG to re-invest in 11 per cent stake through its new fund, TPG Asia VIII
TPG, which first invested in MHE through TPG Asia VI in 2015, will fully exit
National Investment & Infrastructure Fund will exit MHE by selling its 8 per cent stake in the hospital chain
Manipal Hospitals has a pan-India footprint of 29 hospitals across 16 cities with 8,300 beds