After a-year-long negotiation that hurdled around valuation and stake held by Medanta promoters’ families, the acquisition has been finalized.
Manipal Hospitals has ironed out valuation issues with Medanta and is all set to acquire its hospital chain for Rs 5,500 -6,000 crore, BusinessLine reported.
“If we had to face any roadblocks, we would have come across it by now. We have crossed most of the hurdles but there can be a slip between the cup and the lip even at the last moment. It typically comes from someone who has suddenly developed cold feet,” a top executive told the paper.
After year-long negotiation on valuation and stake held by Medanta promoters’ families, analysts believe the deal has been struck at a fair value.
Manipal Hospitals is also working on creating a digital platform for healthcare backed by quality data and experienced professionals. This is to increase involvement in the patient's journey from diagnosis to cure.
“The hospital chain is a very strong brand in the south of India, and health care, after a point, needs a scale. So plans to acquire more hospital chains have never been kept hidden,” the executive said.
Singapore-based investment company Temasek is among one of the investors in both Manipal and Medanta while American alternative asset management company, Carlyle has a 27 percent stake in Medanta. Co-founders Trehan and Sunil Sachdeva own 55 percent in Medanta."Investors usually come in at different times and exit at various periods. So, to get promoters and Private Equity (PE) Funds on the same platform can sometimes be difficult." added the executive.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.