Singapore-Based, Temasek To Acquire Additional 41% Stake In Manipal Health Enterprises

On Monday, April 10, 2023, Singapore-based investment firm Temasek and Manipal Health Enterprises (MHE) jointly announced that former will acquire an additional 41% stake in MHE, to take majority control of the Bengaluru-based firm, as per PTI reported.

Both the companies did not disclose the financial details of the deal. However some sources aware of the acquisition, said that the buyout would be the largest deal in the Indian healthcare worth over Rs 16,300 crore valuing MHE at around Rs 40,000 crore.

At end of the transaction, Manipal Group will retain about 30% in Manipal Health Enterprises. While Sheares Healthcare Group, a wholly-owned subsidiary and independently-managed portfolio company of Temasek, will retain its existing 18 per cent stake, it said.

Additionally, the global alternative asset management firm TPG, which had first invested in 2015 in MHE through TPG Asia VI will fully exit. However TPG will continue to hold 11% stake in the healthcare chain, through its new Asia fund - TPG Asia VIII, it added.

Also, National Investment & Infrastructure Fund (NIIF) will exit its holding from MHE, the statement said. "We are very glad for Temasek's acquisition of a significant stake in Manipal Health Enterprises and its support to the management team in building out the platform to its full potential," Manipal Group Chairman Ranjan Pai said in a statement.

Investing in healthcare requires a long-term outlook as well as a sensitivity to social responsibility, he noted. "I am glad that we have partners like Temasek and TPG who resonate with these values and will continue to be a part of the journey ahead. I am also grateful to NIIF who partnered with us at a critical juncture, at the peak of the Covid-19 pandemic and supported us as we continued to provide high-quality healthcare," Pai added. Headquartered in Bengaluru, Manipal Hospitals currently serves over fifty lakh patients a year through its network of 29 hospitals.