Temasek gains extra 41% stake in Manipal Health Enterprises

Temasek, a Singaporean firm, will shortly own a controlling share in Bengaluru-based Manipal Health Enterprises after buying another 41% of the hospital network. Manipal Group will keep around 30% of MHE following the acquisition, while Sheares Healthcare Group, a Temasek subsidiary, will maintain its current holding of 18%, according to a joint statement released by the two businesses.

TPG - an asset management firm - which invested in MHE back in 2015 will exit but will hold an 11% stake via its new Asia fund, TPG Asia VIII. Meanwhile, National Investment & Infrastructure Fund (NIIF) will exit its holding from MHE. "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,” says Puneet Bhatia, Co-Managing Partner of TPG Capital Asia

Reports say that the deal has valued the hospital chain at Rs 40,000 crore ($5 billion) of enterprise value, making this transaction one of the biggest in the Indian healthcare sector. "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.