Citing people familiar with the matter, Bloomberg said that GIC plans to pick up this stake from the hospital chain’s founding Moll family and Grupo BTG Pactual, while adding that the deal could be announced within a month.
Last week, private equity firm Carlyle Group LP had shelled out $600 million to pick up an 8.3 per cent stake in Rede D’Or, that 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.
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 week.
Post the Carlyle deal, it is estimated that the Moll’s family has a 68 per cent stake in Rede d’Or, while BTG holds. 23.6 per cent.
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.
“BTG acquired 25.6 per cent of the company in 2010 for 600 million reais, through convertible bonds,” the Bloomberg report said quoting a person with knowledge of the matter, while adding that “Rede D’or’s value had surged in the past five years, making Moll a billionaire with an estimated net worth of $4.5 billion”.
After Carlyle’s purchase, BTG’s stake stands at almost 24 per cent, while the Moll family maintains control of the company.
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.
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