Apr 10, 2023
Manipal Health Enterprises announces agreement for Temasek to acquire 41% stake
It was announced today that Temasek has signed definitive agreements to acquire an additional 41% stake in Manipal Health Enterprises (MHE). Founded in 1991 by Dr Ramdas Pai, its Chairman Emeritus, Manipal Hospitals is a leader in healthcare delivery in India.
Following the closing of the transaction, Manipal Group will hold about 30% of MHE. Sheares Healthcare Group, a wholly-owned subsidiary and independently-managed portfolio company of Temasek, will retain its existing 18% stake. 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% in MHE, through its new Asia fund - TPG Asia VIII. National Investment & Infrastructure Fund (NIIF) will exit its holding from MHE.
Dr. Ranjan Pai, Chairman of Manipal Group, said, “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. 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.”
Puneet Bhatia, Co-Managing Partner of 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.” 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.
Padmanabh Sinha, Executive Director 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.”
Manipal Hospitals, is headquartered in Bengaluru and has a pan-India presence. The hospital chain currently serves over 5 million patients a year through its network of 29 hospitals.
Allegro Capital Private Limited acted as the financial advisor on this transaction.
About Manipal Hospitals
As a pioneer in healthcare, Manipal Hospitals is among the top healthcare providers in India serving over 5 million patients annually. Its focus is to develop an affordable, high quality healthcare framework through its multispecialty and tertiary care delivery spectrum and further extend it to out of hospital care. With the completion of acquisition of 100% shareholding in Columbia Asia Hospitals Private Limited and Vikram Hospital (Bengaluru) Private Limited, the integrated network today has a Pan-India footprint of 29 hospitals across 16 cities with 8;300+ beds, and a talented pool of 4,000 doctors and an employee strength of over 12,000.
Manipal Hospitals provides comprehensive curative and preventive care for a multitude of patients from around the globe. Manipal Hospitals is NABH, AAHRPP accredited and most of the hospitals in its network are NABL, ER, Blood Bank accredited and recognized for Nursing Excellence. Manipal Hospitals has also been recognized the most respected and patient recommended hospital in India through various consumer surveys.
Temasek is an investment company with a net portfolio value of S$403 billion (US$297b) as of 31 March 2022. Headquartered in Singapore, it has 12 offices in 8 countries around the world.
Temasek’s Purpose “So Every Generation Prospers” guides it to make a difference for today’s and future generations. The Temasek Charter defines its three roles as an Investor, Institution and Steward, and shapes its ethos to do well, do right and do good.
Sustainability is at the core of all that Temasek does. It is committed to catalysing solutions to global challenges and activating capital – financial, human, social and natural – to bring about a better and more inclusive world for all.
TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $135 billion of assets under management and investment and operational teams around the world. TPG invests across five multi-product platforms: Capital, Growth, Impact, Real Estate, and Market Solutions and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities. For more information, visit www.tpg.com or @TPG on Twitter.
About National Investment and Infrastructure Fund Limited
National Investment and Infrastructure Fund Limited (NIIFL) is a collaborative investment platform for international and Indian investors, anchored by the Government of India, which manages funds with investments in different asset classes and diversified sectors that generate attractive risk-adjusted returns. NIIFL manages over $4.3 billion of equity capital commitments across its three funds – Master Fund, Fund of Funds, and Strategic Opportunities Fund, each with a distinct investment strategy committed to support the country’s growth needs.
For more information and recent updates on NIIFL, please visit www.niifindia.in and follow the official LinkedIn channel.