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Last Updated : Apr 29, 2019 04:04 PM IST | Source:

Ball in Medanta's court, following Manipal-TPG's Rs 5,800-cr acquisition bid

Manipal and TPG entered into negotiations with heart surgeon Naresh Trehan and other investors in October 2018 to acquire their stake in Medanta.

Viswanath Pilla @viswanath_pilla

Manipal Hospitals, backed by US private equity investor TPG Capital, is waiting to hear from the Board of Medanta Hospital for which it has submitted a bid of about Rs 5,800 crore.

“They (Medanta) are yet to take it to their board (for evaluation of the bid),” a senior executive told Moneycontrol.

Medanta is yet decide on a timeframe of this board meet.

Medanta couldn't be reached for a comment.

Manipal and TPG entered into negotiations with Medanta Chairman and heart surgeon Naresh Trehan, as well as other investors, in October 2018 to acquire their stake in the company.

Manipal, led by Ranjan Pai, was in race to buy Fortis Healthcare, but Malaysia's IHH Healthcare outbid rivals to buy the troubled healthcare provider.

Pai is believed to be aggressively pursuing Medanta as the deal would help Manipal expand its footprint in north India.

Economic Times reported on April 29 that Medanta’s exiting investor Carlyle will decide on the offer by next week. The report also said that KKR-backed Radiant may also join the race though it hasn’t yet submitted the financial bids.

Dr Trehan, his family members and co-founder Sunil Sachdevan own 55 percent while the rest is held by Carlyle Group (27 percent) and Temasek (18 percent).

According to RoC filings, Medanta's holding company GHPL was valued at Rs 4,330.8 crore as of April 2018.

Medanta runs a flagship super-specialty tertiary-care hospital in Gurugram called Medicity. It commenced operations in November 2009 and has a 1,544 bed capacity as on March 31, 2018.

Along with Medicity, Medanta operates a 120-bed hospital in Indore and a 174-bed hospital in Ranchi on lease. Medanta is in the process of doubling its bed count in the next two-three years by setting up hospitals in Lucknow, Patna and Noida.

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First Published on Apr 29, 2019 04:04 pm
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