TPG Capital and Manipal in talks to acquire majority stake in Medanta

25 October 2018 (Last Updated October 25th, 2018 14:52)

TPG Capital and Manipal Health Enterprises are reportedly in talks to acquire majority stake in Medanta, which operates hospitals in several cities of India.

TPG Capital and Manipal Health Enterprises are reportedly in talks to acquire majority stake in Medanta, which operates hospitals in several cities of India.

Carlyle Group, a US-based private equity fund, owns 27% stake in Medanta, Singapore-based Temasek Holdings has 18% interest, while heart surgeon Naresh Trehan and his family, and Medanta co-founder Sunil Sachdeva own the remaining stake.

Malaysia-based IHH Healthcare withdrew its non-binding bid for Medanta after it purchased hospital unit of Fortis Healthcare in July, reported Live Mint.

According to Mint’s March report, IHH submitted a bid, which valued Medanta at around Rs57bn ($778m).

An unnamed source told the publication: “While the discussions are still on and it is yet to submit a bid, Manipal-TPG is likely to offer a valuation of Rs60bn for Medanta.”

Another unnamed sourced said: “TPG has been actively looking to build up Asia Healthcare Holdings—its healthcare platform. Medanta’s acquisition will help the private equity firm diversify its healthcare investments.”

Since 2016, TPG has been increasingly focusing on expanding its healthcare portfolio in the country. Currently, it owns Cancer Treatment Services International; Rhea Healthcare, an operator of Motherhood hospital brand; and Sai Life Sciences, a drug developer.

The stake in Medanta will help South India-based Manipal to increase its revenue and gain a presence in the northern part of the country.

Set up in 2009, Medanta operates hospitals and clinics in Gurugram, Indore, Ranchi, Sri Ganganagar and Lucknow.