Temasek to buy 41% stake in Manipal Health, biggest deal in health sector

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New Delhi : Singaporean investment firm Temasek will acquire an additional 41 per cent stake in Bengaluru-based Manipal Health Enterprises for Rs 16,300 crore ($2 billion). With this, Temasek will have 59 per cent stake in Manipal Health. Manipal Health Enterprises is one of the largest hospital chains in the country. The two companies said in a joint statement issued on Monday that Temasek would buy the stake from private equity company TPG and the family of Manipal founder Ranjan Pai.

Biggest deal in the healthcare sector

According to media reports, the financial side of the deal has not been disclosed in the joint statement. However, sources said that Temasek will buy this stake in a deal of more than Rs 16,300 crore. In this context, the valuation of Manipal Health comes to around Rs 40,000 crore. In this way it will be the biggest deal in the Indian healthcare sector.

After the completion of this deal, Temasek’s stake in Manipal Health Enterprises will increase to 59 per cent. It already holds 11 per cent stake in Manipal Health. After this deal, TPG will completely exit from Manipal Health Enterprises. At the same time, the stake of the Pai family will come down from 50 to 30 per cent.

NIIF is also selling stake

India’s Sovereign Wealth Fund and National Investment and Infrastructure Fund (NIIF) are also selling their entire stake to Temasek. Manipal operates a chain of 29 hospitals in 16 cities of the country. The number of beds in these hospitals is 8,300. Manipal Group Chairman Ranjan Pai said in the statement that we are very pleased that Temasek is acquiring a significant stake in Manipal Health Enterprises.

He said that investment in the healthcare sector requires a long-term perspective along with a sense of social responsibility. The Bangalore-headquartered Manipal Hospital provides services to 50 lakh patients in a year. It has 29 hospitals in its network.

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