IHH Healthcare, Temasek looking to acquire majority stake in Medanta: Report

New Delhi: IHH Healthcare Behard and Temasek Holding seem to be in the race to acquire a controlling stake in Medanta hospital recent media reports have revealed.

According to a recent report in TOI, both the firms are in separate talks with Medanta hospitals for a deal, which is likely to be valued around Rs 5,800 crore ($900 million)

IHH Healthcare, one of the largest healthcare group which operates more than 50 hospitals in 10 markets under brands like Gleneagles, Mount Elizabeth and Parkway was recently rumoured to have been in talks for acquiring major stake in Fortis. However, the deal did not go through and the giant is eager to partner with Trehan

According to the TOI report, IHH is trying to acquire Medanta shares held by Carlyle, Temasek and the founding partners of Trehan, which would amount to a majority stake in the healthcare firm.Presently, private equity major Carlyle holds 27 percent stake and Temasek holds 18 percent stake in Medanta hospital together constituting 45 percent stake, whereas the remaining 55 percent is with Trehan’s family and other promoters, including co-founder Sunil Sachdeva.

On the other hand, Temasek has also shown their interest in buying out investors who are in exit mode and also keen on acquiring a large private healthcare services provider in Asia’s third-largest economy.In 2015, Temasek had purchased shares held by one of the founding shareholders Punj Lloyd in $105 million, valuing Medanta at about $600 million.

Temasek also owns minority shares in Manipal Hospitals and cancer care specialist HCG.

Medanta hospital was founded in 2009 by renowned cardiovascular surgeon Naresh Tehran and Sunil Sachdeva, operates more than 1,600 beds, mostly from its large Gurgaon facility spread over 43 acres.

Besides a few shareholders seeking an exit, the company is also looking for infusion of fresh capital to expand footprint in newer markets such as Lucknow, Indore and Ranchi.

IHH was also eyeing a deal with Max Healthcare, in which South African partner Life Care is selling 50% ownership.

TOI reports the domestic healthcare industry is projected to grow at a compounded annual growth rate of 12%, hitting Rs 6.85 lakh crore by 2020, on the back of rising insurance coverage, greater awareness and changing disease patterns.