India-based healthcare provider Manipal Hospitals has entered an agreement to purchase a majority stake in hospital chain Sahyadri Hospitals Group, with a deal valued at more than Rs60bn ($700m).

This acquisition marks an expansion for Manipal Hospitals, which annually serves more than seven million patients across India.

Manipal Education and Medical Group chairman Ranjan Pai said: “This acquisition will strengthen our presence in western India, enabling us to extend world-class healthcare to more patients.”

Manipal Hospitals is supported by Singapore-based investment company Temasek and TPG Capital.

Last month, it was reported that Manipal Health Enterprises and Fortis Healthcare were in talks with international financial institutions to secure financing to support their acquisition of Sahyadri Hospitals.

Ontario Teachers' Pension Plan Board (Ontario Teachers'), which holds a 98.9% stake in Sahyadri, acquired the hospital chain in 2022. The company has overseen the hospital chain's growth through strategic initiatives.

Sahyadri now operates 11 hospitals with more than 1,400 beds in the Indian state of Maharashtra.

Sahyadri Hospitals managing director and CEO Abrarali Dalal said: “When Ontario Teachers’ invested, our intention was to create a formidable regional player with the infrastructure, medical equipment and clinical excellence to enable high-quality medical care in cities across the region.

“Backed by strong shareholder support, we’ve been able to invest over Rs9bn since 2022, leveraging our combined expertise to drive the transformation of Sahyadri. We’ve enjoyed a great partnership with the Ontario Teachers’ team and are optimistic about the platform’s continued positive impact on healthcare delivery.”

Ontario Teachers’ private capital managing director Rahul Mukim said: “Our partnership with Sahyadri over the past three years has been focused on unlocking long-term value – investing behind key specialities and medical technology, expanding reach across the state and building institutional processes to strengthen the platform."

The completion of this transaction is contingent upon regulatory approvals.

Ontario Teachers' has engaged a team of advisers, including Jefferies and Alvarez & Marsal for financial advice, Latham & Watkins and Trilegal for legal counsel, and EY for accounting, tax, and commercial expertise.