Manipal Hospitals' Valuation Skyrockets with Temasek's $2 Billion Investment
Is Temasek's Acquisition of Manipal Health a Game-Changer for India's Healthcare Sector?
8 April 2023
Temasek Holdings acquires True North's 18% stake in Manipal Health for Rs 1,400 crore.
Temasek's acquisition makes it the majority stakeholder in Manipal Health.
This acquisition is part of Temasek's efforts to expand its healthcare portfolio in India and highlights the continued interest of foreign investors in the Indian healthcare sector.
Temasek Holdings, the investment arm of the Singaporean government, has acquired an additional 41% stake in Manipal Health Enterprises for Rs 40,000 crore. This deal is the largest private equity deal in India's healthcare sector. Sheares Healthcare Group's Indian arm, owned by Temasek, executed the deal, which now gives it a majority stake of 59% in Manipal Health, compared to the previous 18%. The hospital chain is expected to announce the deal soon, with promoter Ranjan Pai's stake reducing to 30% post-transaction.
TPG Capital Management has sold half of its 22% stake in Manipal Health, which it had invested in 2015. At the same time, National Infrastructure Investment Fund (NIIF) sold its entire 8% stake. NIIF had invested Rs 2,100 crore for the stake in April 2021.
Following this acquisition, Manipal Health Enterprises is expected to shelve its plans for an initial stake sale. Previously, it had been considering an IPO after acquiring Emami Group's AMRI Hospitals. Sheares Healthcare India, the majority stakeholder in Manipal Health, is an investor in Kolkata-based Medica Synergie, and Temasek holds a 16% stake in Medanta Hospitals' operator, Global Health.
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Manipal Health has been expanding its operations through acquisitions. In 2020, it acquired Columbia Asia Hospitals' Indian assets for Rs 2,100 crore. Manipal Health Enterprises acquired Bengaluru-based Vikram Hospitals for Rs 350 crore in June 2021 and Kolkata-based Advanced Medical Research Institute Hospitals for Rs 2,400 crore, which has a 2% stake owned by the West Bengal government. The network now has 8,300 beds across 29 locations.
Finally, Manipal Health was in advanced negotiations to acquire a nearly 70% stake in Kerala-based hospital chain KIMS Health Management from private equity investor True North.