Temasek is most likely to acquire TPG's almost 21% ownership of Manipal Health
The hospital chain would be worth more than $4 billion after the deal. This purchase would produce several returns for TPG, which originally invested in Manipal Health in 2015 by purchasing a 24.75 percent share for Rs 900 crore.
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According to a report by Mint, Temasek Holdings-owned Sheares Healthcare India submitted the highest proposal, putting an end to the bidding war for TPG Inc.'s almost 21 percent interest in Manipal Health Enterprises.
The hospital chain would be worth more than $4 billion after the deal. The acquisition will produce multiple-fold returns for TPG, which previously paid Rs 900 crore for a 24.75 percent interest in Manipal Health in 2015, according to the article.
Manipal Hospitals is owned by the Pai family to the tune of 52.5 percent, Temasek to the tune of 18 percent, and National Infrastructure Investment Fund (NIIF) to the tune of 8%.
Background
In 2017, Temasek acquired Manipal Health from private equity companies True North and Faering Capital in a deal that valued the hospital network at $1.14 billion on an enterprise basis. For $286 million, NIIF bought a stake four years later.
According to The Economic Times, Temasek Holdings, a current investor, and buyout titans KKR & Co. and Baring Private Equity Asia were in negotiations to acquire a 21.5 percent share in Manipal Hospitals. The Pai family was reportedly seeking $400-500 million as part of its proposal to repurchase the shares held by TPG.
Additionally, TPG was in discussions to sell its holding in Care Hospitals. The Economic Times reported on September 13 that a bidding war is underway for Care Hospitals between Blackstone, CVC Capital, Brookfield, Temasek, and Max Healthcare. TPG also owns Nova IVF, India's largest chain of infertility clinics, and Motherhood Hospitals, the country's largest chain of hospitals for mothers and children.
The Pai family built India's first privately owned medical institution in Manipal, Karnataka, in 1953 and went on to found Manipal Hospitals in 1991.
In November 2020, Manipal Hospitals paid Rs 2,100 crore for the Indian assets of Columbia Asia Hospitals, and in June 2021, it paid Rs 350 crore to buy Bengaluru's Vikram Hospitals from private equity company Multiples.
