Singapore-based sovereign wealth fund Temasek announced on Monday that it will acquire an additional 41% stake in India’s Manipal Health Enterprises from investors including private equity firm TPG and the National Investment and Infrastructure Fund (NIIF). The move will boost Temasek’s stake in one of India’s largest hospital chains to 59%.

Manipal Health Enterprises is currently serving over 5 million patients a year through its 29 hospitals in 16 cities with the help of 4,000 doctors, according to a statement issued jointly by the investors.

Deal Value

While Manipal did not disclose the deal value, a person with direct knowledge of the matter revealed that Temasek paid about $2 billion for the additional stake. Manipal did not immediately respond to a query seeking comment.

TPG to Exit Stake

TPG, an investor in Manipal since 2015, will fully exit its stake in the healthcare provider. However, the private equity firm will reinvest via a new fund, according to Puneet Bhatia, co-managing partner of TPG Capital Asia. Bhatia added that TPG looks forward to continuing to support Manipal’s mission of bridging the quality healthcare infrastructure gap in the country by re-investing through their new Asia fund, TPG Asia VIII.

NIIF to Sell Full Stake

India’s sovereign wealth fund, the National Investment and Infrastructure Fund, will also sell its full stake in Manipal to Temasek as part of the deal. Manipal founder Ranjan Pai’s family holding will reduce from about 50% to 30%.

Impact of the Acquisition

Temasek’s acquisition of the additional stake in Manipal Health Enterprises highlights the increasing interest of global investors in India’s healthcare sector. The COVID-19 pandemic has exposed the country’s inadequate healthcare infrastructure and made it clear that India needs more investment in healthcare to meet the growing demand for quality healthcare services.

The investment by Temasek is expected to help Manipal expand its presence in the Indian healthcare market and improve the quality of its services. With Temasek as the majority shareholder, Manipal is expected to have greater access to capital and be able to invest more in technology, research, and development.

The move is also expected to benefit Manipal’s patients by improving the quality of its services and increasing its reach in the country. The healthcare provider’s focus on delivering quality services and bridging the healthcare infrastructure gap in India is expected to continue with the support of Temasek.

Conclusion

The acquisition of an additional stake in Manipal Health Enterprises by Temasek is a significant development in the Indian healthcare sector. The move highlights the growing interest of global investors in India’s healthcare market and is expected to benefit Manipal’s patients by improving the quality of its services and increasing its reach in the country.

With Temasek as the majority shareholder, Manipal is expected to have greater access to capital and be able to invest more in technology, research, and development. This investment is expected to help the healthcare provider expand its presence in the Indian market and bridge the quality healthcare infrastructure gap in the country