Temasek acquires majority stake in India’s Manipal Health Enterprises for reported US$2 billion

TEMASEK will acquire an additional 41 per cent stake in Bengaluru-based Manipal Health Enterprises (MHE).

Manipal did not disclose the exact value of the deal, but an insider familiar with the situation told Reuters that the Singapore sovereign wealth fund will pay about US$2 billion for the additional stake.

With Temasek-owned Sheares Healthcare Group already holding 18 per cent stake in MHE, the acquisition will raise Temasek’s total stake in the hospital chain to 59 per cent, a joint statement on Monday (Apr 10) indicated.

The shares will be acquired from investors including private equity firm TPG and India’s National Investment and Infrastructure Fund. Both will exit their holdings from MHE, but TPG will re-invest via a new fund – TPG Asia VIII – and hold an 11 per cent stake.

Manipal founder Ranjan Pai’s family holding will drop to 30 per cent from 50 per cent, Reuters reported.