Singapore headquartered sovereign wealth fund Temasek which manages a portfolio of $275 billion and has pumped in $10 billion in India is in an advanced phase of negotiations to exit Bengaluru headquartered multi-speciality hospital chain Manipal Hospitals controlled by billionaire Ranjan Pai, multiple banking and private equity sources familiar with ongoing discussions told ET NOW on the condition of anonymity. ET NOW was the first to report the story.
Temasek had purchased 18% stake in Manipal Hospitals from private equity firm True North for approximately Rs 1400 crores in September 2017.
“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 HealthcareBSE 0.95 %,” sources told ET NOW.
Manipal Hospitals is widely considered as the front-runner for a potential merger with debt-laden Fortis Healthcare which will create a combined entity with more than 10,000 beds and take on rival Apollo HospitalsBSE 0.24 %. TPG Capital holds 22% stake in Manipal Hospitals and sealed the stake purchase in early 2015.
“Temasek will continue their focus on the domestic healthcare sector and evaluate other investment opportunities,” sources added. In January 2015, Temasek picked up an 18% stake in Gurgaon based multi-speciality hospital chain Medanta – The Medicity and remains invested in the company.
“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 cited above.
