Temasek Holdings, a Singapore government-owned firm, has bought a 59% share in Manipal Health Enterprises, India's largest hospital network. Sheares Health, a Temasek-owned company, has purchased an additional 41% share in Manipal from the promoters and current investors. According to numerous sources, the hospital network is worth at Rs29,000 crore ($3.6 billion).
Following the purchase, Manipal Health promoter Ranjan Pai & family's interest would be cut to 30%, while existing investor TPG's stake will be decreased to 11%. The Pai family, which built India's first privately owned medical institution at Manipal, Karnataka, in 1953, controlled 52% of the company.
According to reports, Manipal's existing private equity investor, TPG Capital Management, has sold 11% of its 22% share, while another investor, National Infrastructure Investment Fund (NIIF), has totally departed by selling their 8% stake in the hospital network.
The official announcement is scheduled for next week.
Temasek Holdings will increase its holding in Manipal Health Enterprises from 18% to around 51%, making it the largest investor in India's largest hospital network, according to sources initially reported in January.
Temasek beat out global private equity giant KKR & Co, which had planned to buy up to 48% of the South-based hospital group. KKR was also negotiating with the promoters Pai family to buy out a minority holding, eventually acquiring a 52% stake.
Emails addressed to Manipal, TPG, and NIIF went unanswered, while a Temasek spokeswoman declined to comment.
TPG invested $146 million in Manipal in 2015 and was the first to initiate a formal procedure to divest its Manipal investment. In April of last year, NIIF invested Rs 2,100 crore through its Strategic Opportunities Fund to purchase an 8% interest in Manipal Hospitals.
Manipal Health Enterprise has bought the Kolkata-based AMRI (Advanced Medical Research Institute) Hospitals in a Rs2400 crore deal that is awaiting permission from the West Bengal government. The West Bank government holds around 2% of AMRI.
The acquisition of AMRI will add 1,200 beds to the Manipal group's hospital portfolio, bringing the total to over 9,500 beds. It now has roughly 8,300 beds spread over 28 hospitals.
Manipal Health is also the leading bidder for a 70% stake in KIMS Health Management, Kerala's largest hospital network, from private equity investment True North. With the acquisition of KIMS Kerala, Manipal Health would become India's largest hospital network, with 10,800 beds.
Manipal Health has grown its presence across the country through a series of acquisitions.
In 2020, Manipal Health paid roughly Rs 2,100 crore for Columbia Asia Hospitals' Indian assets, and in June 2021, it paid around Rs 2,100 crore for Bengaluru-based Vikram Hospitals from Multiple Private Equity.