Blackstone, Manipal, Max, Sheares, among potential buyers of stake in KIMS

6 Dec 2022 , 02:57 PM

Manipal Health Enterprises, Max Healthcare, Temasek-owned Sheares Healthcare, and global buyout funds Blackstone and CVC Capital are among a half-dozen potential buyers in preliminary talks to acquire about 65-70% of KIMS Health Management, valuing Kerala’s leading hospital chain at around Rs3,500-3,700 crore ($450 million), states the sources.

According to the sources, the due diligence process is currently underway following first-round bids, and binding bids for the chain are expected by next month. True North, a domestic private equity investor, currently owns 61.06% of KIMS Health, with the promoters holding the remaining 38.94% stake.

Reportedly, True North will exit its investment, while the promoter family will likely dilute an additional 5-10% equity. However, the promoter family’s decision on further stake dilution will be based on the final valuation. ICICI Securities is True North’s advisor for this exit.

KIMS Health operates four hospitals in Kerala, with a total capacity of 1,378 beds.

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