Temasek to buy the stake from private equity firm TPG as well as Manipal founder Ranjan Pai’s family
Singapore-based sovereign wealth fund Temasek will acquire an additional 41 per cent stake in Manipal Health Enterprises for over Rs 16,300 crore (USD 2 billion), boosting its stake in one of India’s largest hospital chains to 59 per cent. Temasek will buy the stake from private equity firm TPG as well as Manipal founder Ranjan Pai’s family, the companies said in a joint statement.
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They did not disclose the financial details of the transaction.
Sources, however, said Temasek stake buyout would be for over Rs 16,300 crore valuing Manipal Health Enterprises (MHE) at around Rs 40,000 crore, making it the largest deal in the Indian healthcare sector. Temasek, which already has an 11 per cent stake in Manipal, will increase its holding to 59 per cent after the transaction.
While TPG will fully exit, Pai’s family will reduce stake from about 50 per cent to 30 per cent. India’s sovereign wealth fund, the National Investment and Infrastructure Fund (NIIF) too is selling its full stake to Temasek. Manipal runs a chain of 29 hospitals in 16 cities, with 8,300 beds.
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“We are very glad for Temasek’s acquisition of a significant stake in Manipal Health Enterprises and its support to the management team in building out the platform to its full potential,” Manipal Group Chairman Ranjan Pai said in a statement.
Investing in healthcare requires a long-term outlook as well as a sensitivity to social responsibility, he noted. “I am glad that we have partners like Temasek and TPG who resonate with these values and will continue to be a part of the journey ahead.
“I am also grateful to NIIF who partnered with us at a critical juncture, at the peak of the Covid-19 pandemic and supported us as we continued to provide high-quality healthcare,” Pai added.
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Headquartered in Bengaluru, Manipal Hospitals currently serves over 50 lakh patients a year through its network of 29 hospitals.
