Major Investor In Manipal Healthcare now looking for Exit: Report

New Delhi: In less than a year, Temasek, a Singapore based sovereign wealth fund is looking to exit Bengaluru based multi-specialty hospital chain Manipal Hospitals according to a recent news in ET.

As per the report, the firm is in the advanced talks to sell its minority stake of 18 percent in the hospital which the firm had acquired from the private equity firm True North for approximately Rs 1400 crores in September last year. With the investment, Temasek joined TPG Capital, another global investor owning 22%, a significant minority shareholder in Manipal Hospitals.The move valued Manipal at $1 billion, or Rs 6,500 crore

Read also: Temasek buys Rs 1,000 crore stake in Manipal Hospitals

One of the sources told ETNow, "Temasek is planning to exit Manipal Hospitals and is in active discussions to sell its minority stake of 18% to the promoter Ranjan Pai and is expecting a premium. The firm is not keen to participate in the proposed merger plans between Manipal Hospitals and Fortis Healthcare. Existing investor TPG Capital is backing Manipal Hospital promoters for the proposed merger with Fortis Healthcare."

Medical Dialogues had earlier reported that Manipal Health Enterprises (MHE), backed by TPG is close to acquiring Fortis Healthcare Ltd. and the deal is projected to be in the range of Rs 6,500 crore. The acquisition will create India’s largest medical services group with more than 10,000 beds and take on rival Apollo Hospitals.

Read also: Manipal Health to acquire Fortis for Rs 6,500 crore: Report

However, now media reports state that Temasek will no longer back Manipal Health. Another source told ET, "Temasek will continue their focus on the domestic healthcare sector and evaluate other investment opportunities."

Temasek also holds 18% stake in Gurgaon based multi-specialty hospital chain Medanta - The Medicity, acquired in January 2015.

"Announcements on the planned exit by Temasek and the proposed merger between Manipal Hospitals & Fortis Healthcare are expected soon if talks proceed on expected lines," added one of the sources quoted in the report.

Responding to an email sent by ET, a Temasek spokesperson said," As a matter of policy, we decline to comment on market speculation and rumours."