Temasek Holdings, on April 10, announced that it has signed definitive agreements with Manipal Health Enterprises (MHE) to acquire a 41% stake in the latter.
MHE runs Bengaluru-headquartered Manipal Hospitals, one of the top healthcare providers in India. Founded in 1991 by chairman emeritus Dr Ramdas Pai, Manipal Hospitals serves over five million patients annually.
Following the closing of the transaction, the Manipal Group will own about 30% of the shares in MHE. Sheares Healthcare Group, a wholly-owned subsidiary and independently-managed portfolio company of Temasek, will retain its existing 18% stake.
Asset management firm TPG, which first invested in MHE through the TPG Asia VI fund in 2015, will exit fully. However, it will hold an interest of 11% in MHE through its new Asia fund, TPG Asia VIII. National Investment & Infrastructure Fund (NIIF) will also exit its holding from MHE.
“We are very glad for Temasek’s acquisition of a significant stake in MHE and its support to the management team in building out the platform to its full potential,” says Dr Ranjan Pai, chairman of Manipal Group. “Investing in healthcare requires a long-term outlook as well as a sensitivity to social responsibility. 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,” he adds.
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"Since our investment in 2015, we have witnessed Manipal’s transformational journey of becoming one of the largest, best-managed and patient-centric healthcare networks in India. By re-investing through our new Asia fund – TPG Asia VIII, we look forward to continuing to support Manipal’s mission of bridging the quality healthcare infrastructure gap in the country.” Leveraging its pan-Asia presence and platform-building strategy, TPG Capital Asia has developed a strong track record in the healthcare sector. Its growing healthcare portfolio includes Sai Life Sciences, Pathology Asia, Columbia Asia, iNova, Novotech, Kangji and Dingdang Health,” says Puneet Bhatia, co-managing partner of TPG Capital Asia.
“NIIF, through its Strategic Opportunities Fund (SOF), is pleased to have played an important role during the growth journey of Manipal Hospitals. The company demonstrated exceptional performance and following our investment, it successfully executed a transformational acquisition that catapulted Manipal Hospitals to become a segment leader in the Indian healthcare services space. We made this investment when elective procedures and medical tourism were at a standstill due to the pandemic, and the timing of recovery was uncertain. Our investment in Manipal is a good example of SOF’s strategy to invest in high-growth businesses which can become market leaders in India,” says Padmanabh Sinha, executive director and chief investment officer, private equity of NIIF.
