Temasek unit takes control of Manipal

TPG, an existing shareholder of Bangalore-based hospital chain Manipal Health Enterprises, will sell 11% of its 21% stake, valuing the company at around ₹40,000 crore ($4.88 billion), the people said, requesting anonymity. The National Investment and Infrastructure Fund (NIIF) will sell its entire 8% stake, they said, adding that Sheares Healthcare will acquire the remaining stake from the holding entity backed by Ranjan Pai. Manipal Education and Medical Group Pvt. Ltd will retain approximately 31% of the company, and TPG will hold around 10%.

Both Ranjan Pai and Temasek declined to comment. Spokespeople for TPG and NIIF did not respond to requests for comment.

View Full Image

A year ago, private equity firm TPG decided to sell its stake in the company and began negotiating with the founders to buy back its shares. Since the buyback did not materialize, TPG began looking for other buyers, Mint reported in September.

In November, Mint reported that KKR and Temasek were in separate discussions to seal the deal in November. On 17 December, Mint reported that Temasek outbid others to emerge as the preferred buyer for Manipal Health Enterprises.

TPG’s sale of 11% of its stake in Manipal Health Enterprises will result in a 10x return on its ₹900 crore investment in 2015.

Temasek first acquired around 18.1% stake from PE firms True North and Faering Capital in 2017. A $1.14 billion enterprise value was assigned to the hospital chain at the time. This stake was later transferred to Temasek’s healthcare platform, Sheares Healthcare. NIIF acquired around 8% of Manipal Healthcare for $286 million in 2021.

Manipal Health has made several acquisitions to expand its offering over the past two years. The chain acquired Columbia Asia Hospitals for ₹2,100 crore in April 2021, taking its bed count to over 7,000. In July, it acquired Multiples PE-backed Vikram Hospital for ₹350 crore, giving Manipal access to an additional 300 beds. Last month, Manipal Health also acquired AMRI Hospitals from Emami Group for around ₹2,800 crore.

Manipal Health Enterprises reported net sales of ₹3,975.2 crore on earnings before interest, tax, depreciation and amortization of ₹1,030.3 crore in the year ended 31 March 2022, according to data research platform VCCEdge, owned by HT Media, the publisher of Mint.