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KKR, Baring Private Equity, Temasek circle TPG stake in Manipal Hospitals

TPG Capital Management looks to cash in on a seven-year investment after the Texas-based private equity fund failed in its attempts to sell the shares back to Manipal's Pai family

September 20, 2022 / 08:17 AM IST
Representative image

Representative image

Buyout giants including KKR & Co, Baring Private Equity Asia, and Singaporean sovereign fund Temasek Holdings, an existing investor, are in talks for a 21.5 per cent stake in Manipal Hospitals, people familiar with the matter told The Economic Times, as TPG Capital Management looks to cash in on a seven-year investment after the Texas-based private equity fund failed in its attempts to sell the shares back to Manipal's Pai family.

National Infrastructure Investment Fund (NIIF) owns eight percent of Manipal Hospitals, Temasek 18 percent and the remaining 52.5 percent is held by the Pai family.

The value of the proposed transaction for the hospital chain -- which will be a precursor to Manipal's proposed public issue expected in 2023-24 -- is expected at around Rs 30,000-32,000 crore ($4 billion), one of the persons said.

It is estimated that TPG invested $146 million in Manipal in 2015 and the US private equity firm is likely to generate a return of more than five times, according to the report.

The Economic Times said KKR, Manipal, TPG, and Temasek declined comment while Baring PE Asia did not respond to queries.

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Moneycontrol could not independently verify the report.

Earlier in July, the Pai family was seeking $400-500 million as part of its plan to buy back the shares held by TPG, as reported by The Economic Times.

TPG is also in talks to exit its investment in Care Hospitals. In a September 13 report, The Economic Times reported that Blackstone, CVC Capital, Brookfield, Temasek and Max Healthcare are in a bidding war for Care Hospitals. Additionally, TPG owns Motherhood Hospitals, India's largest chain of mother and child hospitals, as well as Nova IVF, India's largest chain of infertility clinics.

Manipal Hospitals was established in 1991 by the Pai family, which founded India's first privately owned medical college in Manipal in Karnataka in 1953.

In November 2020, Manipal Hospitals acquired the Indian assets of Columbia Asia Hospitals for Rs 2,100 crore and in June 2021 purchased Bengaluru-based Vikram Hospitals from private equity firm Multiples for Rs 350 crore.
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