Temasek eyes to acquire 18 percent stake in Manipal Healthcare

Temasek Holdings Private Limited, a Singapore based investment company is looking forward to expand its holding in Indian healthcare sector and is eyeing to acquire 18 percent stake in Manipal Health a recent report in ET states. The daily adds that the company is in talks with another private equity, True North, which is currently in possession of the said 18% stake.

It is reported that Temasek has valued the total value of the Manipal Hospitals as much as $1.2 billion (Rs 7,800 crore), making the value of the potential deal at Rs 1,400 Crore.

True North, formerly India Value Fund Advisors (IVFA), had invested Rs 1,000 crore to bankroll Manipal’s expansion in India and overseas, acquiring the 18% stake in 2012, which its planning to sell to exit completely from the healthcare venture.

A formal announcement on the Temasek investment is likely to be due in the next few weeks. However, as of now, no confirmation about the same was made by the company officials

When contacted by the daily about the potential deal, Ranjan Pai, the promoter and principal shareholder Manipal said “I cannot comment on any potential secondary share sale transaction between existing and any new investor,”

“We are not selling any shares now. We may raise funds in future for acquisition purposes and then all shareholders will get diluted proportionally. But as promoters we are not ceding control now," he told ET

Spearheaded by billionaire Ranjan Pai, 43, also the principal shareholder, privately held Manipal Health Enterprises Pvt Ltd (MHEPL) runs the eponymous multi-speciality hospital network and is part of the Bengaluru-headquartered Manipal Education and Medical Group.

Manipal Health Enterprises Private Limited operates a network of healthcare establishments in India and overseas.Private equity investors such as IDFC and Kotak Mahindra PE were early investors in Manipal.

It is reported that this intervention would be the biggest push for Singaporean Investment company to mark their footprints, also this will encourage the Singaporean company to invest more in future. In 2015, bulge-bracket investor TPG invested another Rs 900 crore ($146 million) for a 23% stake. It will remain invested.

It is expected that, TPG and Temasek will both push the Indian Healthcare company Maniphal towards the new healthcare achievements.

“At a significant premium, Pai may divest either partially or fully. But the contours of those negotiations have not been frozen yet and may eventually not fructify as well,” said a person closely associated with the group.

“TPG may also want to hike its stake. Temasek, which thus far has taken only minority stakes in hospitals, is exploring control transactions in the space. But Pai will seek a scarcity premium as there are few good assets available.”

Earlier, Temasek has backed Medanta, Apollo Hospitals and oncology specialists HCG.

Manipal Hospital has a total of 56 specialties offered under one roof to bring in enhanced health delivery for the patients. The hospital is fast becoming a preferred destination for patients from over 30 countries.