TPG Capital-backed Asia Healthcare eyes $100m from stake sale

Asia Healthcare Holdings (AHH), the healthcare platform set up by American private equity fund TPG Capital, is in talks to raise as much as $100 million by selling a significant minority stake, two people directly aware of the PE firm’s fundraising plans said.

TPG has hired Kotak Investment Banking to handle the transaction, the people cited above said, requesting anonymity.

“Several sovereign and global PE funds have shown interest,” said one of the two people cited above. “The overall valuation and the exact quantum of stake that will be sold will be decided in further discussions,” the second person cited above said. “Overall, AHH is looking to raise anywhere between $80-100 million which will be used towards operating expenses as well adding new facilities.”

AHH currently owns TPG Growth’s investments in Bengaluru-based Rhea Healthcare Pvt. Ltd, which operates a network of mother and child care centres in India under the Motherhood brand; and Cancer Treatment Services International (CTSI), a network of single-speciality facilities across India.

A TPG spokesperson declined to comment, while an email sent to Kotak Investment Banking remained unanswered till the time of going to press.

Vishal Bali, a senior healthcare adviser to TPG Growth in Asia and a former group chief executive of Fortis Healthcare, has been named vice-chairman of AHH, Mint reported in August.

In December 2015, TPG Growth bought a stake in Asiri Healthcare, a Sri Lanka-based hospital and diagnostics chain from UK-based emerging markets PE fund Actis Capital. In the same year, TPG Capital bought a minority stake in Manipal Health Enterprises Pvt. Ltd, a part of the Manipal Education and Medical Group, for close to $126 million. Manipal Health owns and operates multi-specialty hospitals in Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu and Goa and manages five teaching hospitals in Karnataka and Sikkim, as well as several fertility clinics across the country.

Mint reported in August that the PE fund had decided to sell Bengaluru-based Healthium Medtech (formerly known as Sutures India Pvt. Ltd) and was in talks with several global PE funds and strategic buyers such as Boston Scientific and Covidien Medtronic. Mint reported in November that Bain Capital and Carlyle Group, Partners Group AG and Advent International have emerged as the key contenders to acquire the company for close to $425 million.

With overall investments close to $10.6 billion, healthcare forms a significant chunk of TPG’s global portfolio.

Also Read:

India: Fortis proposes to buy out assets of Singapore-based RHT Health for $711m

Eris Lifesciences acquires Strides Shasun’s India branded generics biz for $77m

This article was first published on Livemint.com

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.

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.