Temasek plans to pick up 33% additional stake in Manipal Health

16 Jan 2023 , 11:21 AM

According to people familiar with the matter, Singapore’s sovereign fund, Temasek Holdings, will increase its stake in Manipal Health Enterprises from 18% to approximately 51%, making it the largest investor in India’s largest hospital chain.

Temasek plans to invest approximately Rs13,200 crore ($1.6 billion) to acquire an additional 33% stake in Manipal Health from existing investors and its promoters, the Pai family, taking the chain’s valuation at approximately Rs40,000 crore.

According to the people who spoke on the condition of anonymity because the talks are private, private equity firm TPG Capital Management would sell 10% of its 22% stake in Manipal Health, while National Infrastructure Investment Fund (NIIF) would sell its entire 8% stake.

The Pai family, which established India’s first privately owned medical college in Manipal, Karnataka, in 1953, would lose about 15% of their 52% stake. The documentation process is ongoing, and the deal is expected to be signed by next month, according to the sources.

According to the sources, buyout firm KKR & Co, which was previously the frontrunner to make an investment, has decided to withdraw from the talks.

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