Temasek Holdings will chip in around $300 million (Rs 2,100 crore) into Manipal Hospitals' bid for Medanta Hospitals, as it looks to settle firmly in the healthcare sector, according to a report in The Times of India.
The Singapore government-owned investment firm, which holds 18 percent stake in each of the companies, will provide part of Manipal's Rs 5,500-6,000 crore potential bid for Medanta.
It played mediator for the last three-four months of the nine-month-long negotiations after a Rs 3,500 crore Blackstone-led deal fell through, the paper quoted sources say.
Moneycontrol could not independently verify the report.
If the transaction goes without a hitch, Manipal Health will operate more than 3,500 beds and be valued almost $2 billion, they added. ICICI Banks will be the asset financer for the deal.
Temasek is expected to roll over its Medanta shares for an extra pie in Manipal, where it would hold 30-35 percent after stake conversion.
As per the report, CEO and MD of the Manipal Education and Medical Group (MEMG) Dr Ranjan Pai is expected to hold 44-45 percent stake, while it is unclear whether TPG Capital (22 percent stakeholder in Manipal) would participate in this round.
Medanta investor Carlyle (27 percent stake) is expected to cash out, while co-founders Dr Naresh Trehan and Sunil Sachdeva, who own 55 percent, are expected to get a mix of stock and cash.
Both Manipal Health and Temasek did not to respond to the paper's queries.
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