Temasek buys Rs 1,000 crore stake in Manipal Hospitals

Mumbai: Temasek Holding, a Singapore based company has agreed to acquire a stake in Manipal hospitals worth Rs 1,000 crore. A transaction has been approved last week by the Temasek’s investment committee to buy True North’s 16% stake in Manipal Health Systems. The move values Manipal at $1 billion, or Rs 6,500 crore a recent report in TOI states.

It is reported that with the investment Temasek will join TPG Capital, another global investor owning 22%, a significant minority shareholder in Manipal Hospitals.

True North had also acquired controlling interest in KIMS Hospitals last year which has the network in southern India and the Arabian Gulf. True North also has minority shares in Aster DM Healthcare, which it plans to exit through an IPO later this fiscal.

Read also: Kerala Institute of Medical Sciences gets Rs 1300 crore investment from True North

Manipal could become an engine for consolidation in the hospitals business with TPG and Temasek jointly owning about 40% stake in it. TPG in the past has been following Fortis Healthcare acquisitions closely reports TOI.

Read also: TPG offers Rs 3000 crore for Fortis stake, Daiichi moves court

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.

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.

Read also: Temasek eyes to acquire 18 percent stake in Manipal Healthcare