Temasek to buy 41 pc additional stake in Manipal Health Enterprise

NEW Delhi: Temasek has signed definitive agreements to acquire an additional 41 per cent stake in Manipal Health Enterprises (MHE), a statement from the company said on Monday.

Following the closing of the transaction, Manipal Group will hold about 30 pc of MHE while Sheares Healthcare Group, a wholly-owned subsidiary and independently-managed portfolio company of Temasek, will retain its existing 18 pc stake, the statement said.

Leading global alternative asset management firm TPG, which first invested in MHE through TPG Asia VI in 2015, will fully exit, but it will hold an interest of 11 pc in MHE, through its new Asia fund- TPG Asia VIII. National Investment and Infrastructure Fund (NIIF) will exit its holding from MHE, the statement said.

Dr Ranjan Pai, chairman, Manipal Group, said, “Investing in healthcare requires a long-term outlook as well as a sensitivity to social responsibility. Glad we have partners like Temasek and TPG who resonate with these values and will continue to be a part of the journey ahead. Grateful to NIIF which 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.”

Puneet Bhatia, co-managing partner, TPG Capital Asia, said: “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.”

Padmanabh Sinha, ED and chief investment officer, private equity of National Investment and Infrastructure Fund said, “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.”