IHH, TPG eye majority stake in Global Hospitals

Visual from Global Hospitals homepage

Malaysia-based IHH Healthcare Bhd and US private equity firm TPG Capital Management are in advanced talks for a controlling stake in India’s Global Hospitals in a $350 million deal.

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.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.