In one of the largest private equity deals in the Asian healthcare space, Temasek Holdings of Singapore has acquired a 59 per cent stake in Manipal Health Enterprises of India, which runs the Manipal Hospitals chain.
The USD 2 billion (nearly INR 16,400 crore) deal, which has made headlines today, gives the Singapore entity controlling stake — up from its previous 18 per cent stake — in the Indian company through Temasek-owned Sheares Health. The Manipal Hospitals chain consists of 29 hospitals in 16 cities. A formal announcement of the deal is expected on Monday.
In 2021, the Manipal Hospitals chain reportedly had the highest private equity investment in the India healthcare sector, with about USD286 million (INR2,345 crore). With the new investment by Temasek, the enterprise value of Manipal Hospitals is expected to rise to INR40,000 crore.
Though there is no official statement yet on the deal, the transaction reportedly involves the exit of the National Investment and Infrastructure Fund (NIIF), which is selling its entire 8 per cent share, and equity sale by TPG, an existing shareholder, which is selling 11 per cent of its 21 per cent share in Manipal Hospitals. The remaining stake is reportedly being acquired by Temasek from the holding company, the Manipal Education and Medical Group, which has Ranjan Pai as the promoter.
The Manipal Hospitals stake acquisition comes with the backdrop of rapid growth in the Indian healthcare sector, which was projected to reach USD327 billion by the end of 2022.