According to a report in Business Standard, the acquisition talks were encouraged by the increase in affluent Indian patients who are willing to pay for better-equipped private clinics, as compared to public hospitals.
The Indian daily said the deal would value Global Hospitals, a private healthcare chain at $350 million. Global Hospitals put up the stake for sale last year.
Quoting sources, the report said founder and current chairman K Ravindranath and private equity firm Everstone Capital were among those selling their holdings.
“The talks are quite advanced. This would be a control transaction and could be finalised soon,” said one of the sources, in the Business Standard report.
It further quoted a Global Hospitals spokesman saying company is in talks with “several people” about the stake sale but declined to provide specifics. IHH Healthcare and TPG had also declined to comment.
If successful, the deal would be TPG’s the largest acquisition to date in Indian health care while an investment into Global Hospitals would mark a further expansion in Indian health care for IHH.
IHH is Asia’s largest hospital operator by stock market value. It already owns a nearly 11 per cent stake in Apollo Hospital Enterprises, India’s largest private hospital chain.
Analysts have expected private healthcare providers to see growing investor interest, given that India’s public spending on health is among the lowest in the world, as well as it being a recession-proof industry.
Global Hospitals operates five hospitals and three smaller ones across Mumbai, Chennai, Bangalore and Hyderabad with more than 2,000 beds.
Private equity investments into the sector in India stood at $552 million last year, slightly lower than the $786.2 million in 2013, according to Thomson Reuters data.