India: TPG looks to combine Fortis, Manipal; Asian Paints to buy Sri Lanka’s Causeway Paints

Visual from Fortis website

Private equity firm TPG Capital is looking at a possible consolidation of Fortis Healthcare and Manipal Health Enterprises. Meanwhile, Asian Paints is set to acquire Causeway Paints Lanka through its subsidiary.

TPG Capital looks to consolidate Fortis, Manipal

Private equity firm TPG Capital is looking at a possible consolidation of Fortis Healthcare and Manipal Health Enterprises, which could create one of the largest healthcare services provider in the country, said a Times of India report citing sources.

According to the sources quoted in the report, TPG has held discussions to buy a large stake along with management control in Fortis Healthcare. The investment firm is also in simultaneous talks to increase shareholding in Manipal Health. It is considering an  eventual merger between the two.

The consolidation talks, which are still in early stages, could be a multi-stage process starting with  TPG would initially acquire about 26% ownership and follow it up with a management takeover of Fortis.

TPG owns a 22% stake in the privately held Manipal. Another private equity investor True North (formerly India Value Fund) wants to offload its 18% stake in Manipal and has engaged with TPG and Singapore’s Temasek Holding, the sources in the report said.

Asian Paints to acquire Sri Lanka’s Causeway Paints

Asian Paints Ltd today said its indirect subsidiary Berger International Pvt Ltd, Singapore, has entered into a share purchase agreement with Causeway Paints Lanka (Pvt) Ltd, Sri Lanka, to acquire of 100 per cent stake in the company in an all cash deal.

According to a stock exchange filing, Asian paints said the deal is aimed at enhancing the group’s presence in the Sri Lankan market, where the company already has presence through its subsidiary, Asian Paints (Lanka) Ltd.

While the Indian firm did not disclose the deal size, it said, CPLPL reported revenue of Sri Lankan Rupee 5,630 million (around Rs 253.60 crore) in the previous fiscal.

 

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