Manipal Hospitals submits $828.6m binding takeover offer for India’s Medanta

Photo: Reuters

India’s Manipal Hospitals, a multi-specialty hospital chain backed by TPG and Singapore’s Temasek, has submitted a binding offer amounting to Rs 5,800 crore ($828.57 million) to buy Gurugram-headquartered Medanta, per a report by the Economic Times.

News about Manipal Hospitals, which is led by Ranjan Pai, evincing interest in acquiring Medanta surfaced late last year. At that point in time, KKR’s hospital platform Radiant Life Care, too, was reported to be in the fray.

Promoted by renowned cardiac surgeon Naresh Trehan, Medanta is in the process of evaluating the offer, the ET report stated citing sources. It is understood that its board is expected to meet over the next few days to discuss the matter.

Established in 2009, Medanta is a multi-specialty hospital with a significant presence in Lucknow, Indore, Ranchi and Sri Ganganagar, besides its headquarters in Gurgaon.

Trehan, along with his family and co-founder Sunil Sachdeva, holds 55 per cent stake in Medanta, while another 27 per cent is owned by private equity biggie Carlyle Group. The remaining 18 per cent is held by Singapore’s Temasek Holdings.

The deal, if fructifies, could see Carlyle make a complete exit from the hospital in which it invested around five years ago. It is understood that Trehan could retain a minority stake in the hospital after the acquisition.

Currently, Pai holds a majority 60 per cent stake in Manipal Hospitals, while its existing investors TPG and Temasek own the remaining. It is understood that both the investors will partially fund the proposed acquisition, while new investor Blackstone will also pitch in with a Rs 3,200-crore ($450 million) funding commitment.

Apart from the hospital chain, Pai also runs teaching hospitals and fertility clinics across the country.

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