FILE PHOTO: FILE PHOTO: A Temasek logo is seen at the annual Temasek Review in Singapore July 7, 2016. REUTERS/Edgar Su/File Photo/File Photo
| Photo Credit: Edgar Su
Temasek, Singapore-based sovereign wealth fund, raising its stake in Manipal Health Enterprise (MHE) to a controlling position will not result in any change in the ‘operation’ and ‘management’ of the healthcare chain, said Dr. Ranjan Pai, Chairman, Manipal Group.
According to market observers, the Temasek stake buyout could be in the range of ₹16,000 crore ($2 billion) valuing MHE, the holding arm of Manipal Hospitals, at around ₹40,000 crore, thus making the deal probably the largest such in the Indian healthcare sector.
“The way we run business at Manipal Group is one of the main reasons why Temasek was interested in us, earlier and now again. We have been successful in separating the management away from the ownership,” Dr. Pai told The Hindu.
He said MHE together with Temasek would continue to expand business, explore green-field hospital projects and continue to scout for suitable M&A opportunities.
Under the new development, Temasek would receive four board positions while Manipal Group’s board positions would be reduced to three.
Although Dr. Pai did not divulge any financial details of the deal, Dr. Pai said, “we will use some of this money to pare down our debt.”
Temasek already held 18% in MHE, through Sheares Healthcare Group, a wholly-owned subsidiary and independently-managed portfolio company of Temasek. Now with the funding firm increasing its stake by 41%, its total stake reached 59%, while Manipal Group would hold 30% and the remaining 11% stake would be re-invested by TPG through its new fund. Also, National Investment & Infrastructure Fund (NIIF) which held a 8.5% stake will fully exit, said Manipal Group in a statement.
Bengaluru-based Manipal Hospitals claimed it currently served over 5 million patients a year through its network of 29 hospitals.
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