GIC Private Ltd bought an undisclosed stake in Rede D’Or from investment bank BTG Pactual for 1.6 billion reais, the bank said in a filling yesterday (May 27). But, media reports, citing sources, added GIC had bought an equal number of shares from the hospital chain’s founding Moll family, taking the sovereign wealth fund’s total investment to around 3.2 billion reais.
Last month, private equity firm Carlyle Group LP had shelled out $600 million to pick up an 8.3 per cent stake in Rede D’Or, which has over 4,500 beds in 29 hospitals and 30 oncology clinics.
In January this year, Brazil allowed foreign investors to buy local hospitals and health clinics in the country.
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The Carlyle deal had seen the private equity firm acquiring a stake through capital increase, that led to the dilution of stakes for existing investor Grupo BTG Pactual SA, and also its promoter and controlling shareholder who is also its chairman – Jorge Moll.
“Proceeds from the transaction will support Rede D’Or’s growth plans, including the construction of new hospitals, expansion of existing facilities, and the financing of new acquisitions. Rede d’Or will remain majority-owned by the founding Moll family, and BTG Pactual will continue to own a minority stake,” Carlyle had said in a statement last month.
Rede D’Or, which has 27 hospitals in four Brazilian states, had revenues to the tune of of 5.5 billion reais last year, and earnings before interest, tax, depreciation and amortization of about 930 million reais, during the same period.
In December 2015, an affiliate of GIC had reached a deal to acquire Eco Sapucai, an office building in Downtown Rio de Janeiro, marking the sovereign wealth fund’s first wholly-owned investment in Latin America.