Temasek likely to buy TPG’s nearly 21% stake in Manipal Health

Temasek entered Manipal Health in 2017 when it bought out private equity firms True North and Faering Capital in a deal valuing the hospital chain at an enterprise valuation of $1.14 billion. Four years later, NIIF acquired a stake for $286 million.

The race to buy stake in TPG Inc.’s nearly 21 percent stake in Manipal Health Enterprises seems to have come to a conclusion after Temasek Holdings-owned Sheares Healthcare India’s submission of highest bid, according to a report by Mint.

The deal would value the hospital chain above $4 billion. For TPG, which first acquired a 24.75 percent stake for Rs 900 crore in Manipal Health in 2015, this deal will generate multi-fold returns, the report added.

Moneycontrol could not independently verify the report.

National Infrastructure Investment Fund (NIIF) owns 8 percent of Manipal Hospitals, Temasek 18 percent and the remaining 52.5 percent is held by the Pai family.

Background

Temasek entered Manipal Health in 2017 when it bought out private equity firms True North and Faering Capital in a deal valuing the hospital chain at an enterprise valuation of $1.14 billion. Four years later, NIIF acquired a stake for $286 million.

Buyout giants including KKR & Co, Baring Private Equity Asia, and Singaporean sovereign fund Temasek Holdings, an existing investor, were in talks for a 21.5 percent stake in Manipal Hospitals, as reported by The Economic Times. It added that the Pai family was seeking $400-500 million as part of its plan to buy back the shares held by TPG.

TPG was also in talks to exit its investment in Care Hospitals. On September 13, 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.