MUMBAI: Singapore’s Temasek Holdings is set to acquire a controlling 72 per cent stake in Hyderabad-based CARE Hospitals from the current private equity owner Advent International for Rs 1,800 crore, edging past competing offers from Abraaj, an emerging markets private equity group. Temasek had earlier teamed up with TPG Growth to form a consortium but the latter opted out of the race a few weeks back after it was not comfortable with the final contours of the transaction, including the pricing, said three people directly involved in the deal. Once completed, this will arguably be the first time that Temasek acquires a controlling stake in an Indian company on its own. It had earlier this year joined hands with Advent to buy the consumer division of Crompton Greaves. A formal announcement is expected in the next seven to 10 days. “I would like to state that we have no comments to offer to your query,” an Advent India spokesperson said in an emailed response to ET query. A Temasek spokesperson declined to comment on what he said were market speculation and rumours Founded in 1997 by Dr B Soma Raju and a team of cardiologists, Quality CARE India Ltd runs a network of 17 hospitals with 2,400 beds across nine locations under the CARE Hospitals brand name. The hospitals are based in Hyderabad, Secunderabad, Visakhapatnam, Raipur, Pune, Nagpur, Bhubaneswar, Jabalpur and Surat. It is expected to add 600 more beds in the near future through greenfield and brownfield expansion taking the overall count to 3,000 beds. CARE also runs a network of telemedicine hubs in rural Andhra Pradesh and Maharashtra. Its founders developed Asia’s first indigenous coronary stent. In 2012, Advent acquired 72 per cent of the chain for $105 million (Rs 680 crore at current exchange rate) from investors including investor Rakesh Jhunjhunwala, Matrix Labs founder Nimmagadda Prasad and UK-based Ashmore. The remaining stake is held by doctors working at the chain. Earlier this year, Advent mandated global independent investment bank Moelis & Co. and Capital Fortunes to sell its three-year-old investment. The process had seen wide interest in the initial round from .. Read more at: http://economictimes.indiatimes.com/articleshow/50178522.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Source: Economic TimesSingapore’s Temasek Holdings to buy Hyderabad-based CARE Hospitals for Rs 1,800 crore
Industry: Other 2015-12-15
