Singapore's Temasek buys 33% additional stake in Manipal Hospitals from TPG & promoters

Singapore government-owned fund Temasek Holdings has become the majority shareholder in India's leading hospital chain Manipal Hospitals by acquiring an additional 33 per cent stake, according to an Economic Times report. The fund bought the stake from Manipal's promoters and existing shareholders.

Temasek wins over the private equity firm KKR & Co, which had intended to acquire up to 48 per cent of the hospital group. In addition, KKR was attempting to purchase a minority investment from the promoter Pai family.

Post deal, the company's valuation has increased to Rs 29,000 crore, the report said citing people aware of the development. Existing shareholder TPG's holding is reduced to 11 per cent from the previous 22 per cent while promoter Ranjan Pai and family's stake has come down to 30 per cent.

National Infrastructure Investment Fund (NIIF), another investor in Manipal Hospitals, has completely exited the South-based hospital group through this deal by selling its entire 8 per cent stake.

US-based PE firm TPG invested in Manipal way back in 2015 and last year in April NIIF invested  Rs 2,100 crore through its Strategic Opportunities Fund to purchase an 8 per cent stake in Manipal Hospitals.

Manipal Hospitals is one of the big multispeciality hospitals in Bangalore. It is growing its presence through acquisitions. Currently, the company is all set to buy Kolkata-based AMRI (Advanced Medical Research Institute) Hospitals for Rs 2400 crore. The deal is subject to receive approval from the West Bengal government. The West Bank government holds around 2 per cent stake in AMRI.

Reportedly, Manipal is also in talks to buy 70 per cent stake in Kerala's KIMS Health Management from PE firm True North.

Previously, Manipal bought Columbia Asia Hospitals' Indian assets for around Rs 2,100 crore in 2020. Post this in June 2021, the company took over the business of Bangalore-based Vikram Hospitals for roughly Rs 2,100 crore.