Confirmed: Singapore's Temasek to pick up 41% stake in Manipal Hospitals

Manipal Hospitals

Singapore's Temasek-backed Sheares Healthcare India has signed definitive agreements to acquire an additional 41 percent stake in Ranjan Pai-led Manipal Health Enterprises, according . After the transaction, Manipal Group will hold about 30 percent of Manipal Hospitals, while Sheares will retain its 18 percent.

On December 27, 2022, Moneycontrol had reported that Temasek was eyeing a controlling stake in the hospital chain by buying a stake from the promoter family and other investors TPG and NIIF in a proposed transaction, which would value Manipal Hospitals between Rs 40,000 crore and Rs 42,000 crore. Later on April 8, Moneycontrol reported that the deal had been signed between both the parties.

Leading global alternative asset management firm TPG, which first invested in Manipal Hospitals through TPG Asia VI in 2015, will fully exit, but hold an interest of 11 percent through its new Asia fund, TPG Asia VIII. National Investment & Infrastructure Fund (NIIF) will exit its holding from Manipal Hospitals, according to a statement released by the healthcare chain.

Allegro Capital Private Limited acted as the financial advisor on this transaction. "We are glad for Temasek’s acquisition of a significant stake in Manipal Health Enterprises and its support to the management team in building out the platform to its full potential. Investing in healthcare requires a long-term outlook as well as a sensitivity to social responsibility," Dr Ranjan Pai, Chairman of Manipal Group, said.

"I am also grateful to NIIF who partnered with us at a critical juncture, at the peak of the Covid-19 pandemic and supported us as we continued to provide high-quality healthcare," Pai added.

Other than Manipal Hospitals, Sheares India is also an investor with the majority stake in the Kolkata-based hospital chain Medica Synergie. Separately, Temasek also holds around 16 percent in Global Health, the operator of Medanta Hospitals, which is listed on the domestic bourses.

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"Since our investment in 2015, we have seen Manipal’s transformational journey of becoming one of the largest, best managed and patient-centric healthcare networks in India. By re-investing through our new Asia fund – TPG Asia VIII, we look forward to continuing to support Manipal’s mission of bridging the quality healthcare infrastructure gap in the country,” Puneet Bhatia, Co-Managing Partner of TPG Capital Asia, said.