Temasek likely to acquire 'significant stake' in Cloudnine Hospitals: Report

Temasek’s purchase will encompass both a recent primary investment and the upcoming acquisition of Peak XV’s shares

Singapore’s Temasek Holdings is nearing an agreement to purchase an 18 to 20 percent stake in Bengaluru-based Cloudnine Hospitals for approximately $125 million, the Mint has reported.

The deal, which has been in the making for over 18 months, could value the specialist mother and baby care hospital at around $600 million, the report said.

The transaction will also mark Peak XV’s exit from Cloudnine after an 11-year investment. Peak XV, formerly Sequoia Capital, initially invested $16 million in Cloudnine during a 2013 funding round.

Temasek’s purchase will encompass both a recent primary investment and the upcoming acquisition of Peak XV’s shares, the report cited sources as saying.

The move is part of Cloudnine’s efforts to realign its capital structure in preparation for a potential market listing in 2025. The company is making its second attempt at an initial public offering (IPO), having previously filed draft papers for a Rs 1,200-crore IPO in 2022.

“This investment is more of a pre-IPO round rather than a capital raise,” a source said, saying Cloudnine does not require additional funds.

Earlier this year, the company secured Rs 359 crore from Temasek and TPG Newquest in a primary funding round.

It seems to be a busy time for the healthcare sector. As exclusively reported by Moneycontrol, Blackstone and TPG-owned Care Hospitals are in advanced talks for a so-called reverse merger with Dr Azad Moopen's Aster DM Healthcare Ltd, a transaction that will result in the private equity firm-owned hospital chain getting listed on exchanges.

Care is in advanced stages of completing due diligence of Aster DM. Work on documentation for a shareholders’ agreement is expected to begin soon, source told Moneycontrol.

Temasek shopping list

Temasek Holdings is also reportedly close to acquiring a significant minority stake in VFS Global, a visa outsourcing and technology services firm, in a transaction that could value the company at about $7 billion, including debt.

In related news, Rebel Foods, known for its cloud kitchen brands such as Faasos, Oven Story and Behrouz Biryani, is reportedly in discussions to raise $120 million (approximately Rs 1,000 crore) in a new funding round led by Temasek.