Mumbai: India and South-East Asia focused investment group, Everstone has agreed to buy a controlling stake in Sahyadri Hospitals Ltd(SHL). According to recent media reports, Everstone is in negotiation with the existing investor Global Infrastructure Partners to buy 51% stake in Sahyadri Hospitals.
Pune-based Sahyadri Hospitals is the largest hospital chain in Maharashtra founded in 1994. Currently, it operates five tertiary care and three secondary care hospitals with 750 beds across Pune, Nashik and Karad. Sahyadri has more than 1,000 clinicians and 2,300 supporting staff, providing medical services.
The transaction will help Sahyadri cement its position as the leading healthcare chain in Maharashtra and increase its bed-count significantly in the next five years while for Everstone, the deal will increase its exposure to India’s healthcare sector where it is already present in numerous segments such as pharmaceuticals and diagnostics.
Commenting on the transaction, Dr Charudutt Apte, founder, chairman and managing director, Sahyadri Hospitals told Live Mint., “We are excited about this partnership and the value Everstone Group brings. Sahyadri Hospitals looks forward to the next phase of growth with the support of the experienced team at Everstone.”
As per media reports, the deal involves a combination of primary investment into the Pune-based company and a secondary share purchase from its investors.
The financial details of the deal remain undisclosed. However, people with the knowledge of the matter told The Economic Times, the deal values Sahyadri at about Rs 1000 crore.
As per the daily, IDFC Alternatives had acquired 40% stake in SHL from India Advantage Fund – managed by ICICI Venture in 2012 and another 11% from promoters, in a deal valuing Rs 190 crore for the 51% stake. In April 2018, IDFC Alternatives Ltd had sold its infrastructure asset management business to US-based private equity firm Global Infrastructure Partners (GIP).
Commenting on the deal, Sameer Sain, CEO, Everstone Group told the daily, “Everstone will leverage its’ significant healthcare expertise and experience to grow the overall business. We look forward to working closely with our partners and stakeholders,”
Everstone is one of the largest India and South East Asia focused on healthcare investors. Everstone’s healthcare portfolio includes controlling stakes in domestic pharma distribution platform, Ascent Health; South East Asia based diagnostic device platform Everlife and investment in nutraceutical ingredient business, OmniActive.