Singapore state investment firm Temasek is looking to invest about $300 million in Manipal Hospitals to assist the latter in its bid to acquire Naresh Trehan-promoted Medanta Hospitals, The Times of India reported.
Manipal is looking to acquire Medanta for about Rs 5,500-6,000 crore. The deal talks between the two have been on for a couple of months now.
Temasek owns 18 per cent each in Manipal and Medanta, and has also been playing the role of a mediator in the deal. With this transaction, Manipal is expected to be valued at $2 billion as opposed to $650 million in 2015.
If the deal goes through, Temasek is expected to roll over its shares in Medanta for additional shares in Manipal, the report said. Accordingly, its stake in Manipal will increase to 35 per cent from 18 per cent currently. Meanwhile, Manipal Hospitals promoter Ranjan Pai’s shareholding in the company would come down 44-45 per cent from 60 per cent at present.
Medanta investor Carlyle, which owns 27 per cent share, is expected to cash out, while co-founders Trehan and Sunil Sachdeva, who own 55 per cent, are expected to get a mix of stock and cash.
KKR-backed Radiant Life Care is also in the fray to acquire Medanta.
Medanta’s Gurugram facility currently has over 1,250 beds and 45 specially designed operation theatres. It also manages facilities with about another 300 beds in Indore and Ranchi, and is setting up new hospitals in Patna, Lucknow and Noida.