Manipal Health, which runs the hospital chain in the country, is now in foreign hands, Singapore’s investment company Temasek will acquire.

Singaporean investment firm Temasek will acquire an additional 41 per cent stake in Bengaluru-based Manipal Health Enterprises for Rs 16,300 crore ($2 billion). This will give Temasek a 59 per cent stake in Manipal Health. Manipal Health Enterprises is one of the largest hospital chains in the country. In a joint statement issued by the two companies, Temasek will buy the stake from private equity company TPG and Manipal founder Ranjan Pai’s family. The financial side of the deal was not disclosed in the joint statement. However, sources said Temasek would buy the stake in a deal worth over Rs 16,300 crore. In this context, the valuation of Manipal Health comes to around Rs 40,000 crore. In this way, it will be the biggest deal in the Indian healthcare sector.

Stake will increase to 59 percent

Post completion of the transaction, Temasek’s stake in Manipal Health Enterprises will increase to 59 per cent. It already holds 18 per cent stake in Manipal Health. At the same time, the Pai family’s stake will come down from 50 to 30 percent. India’s Sovereign Wealth Fund and National Investment and Infrastructure Fund (NIIF) are also selling their entire stake to Temasek. After the deal, TPG’s stake in Manipal Health Enterprises will come down to 11 per cent. Manipal operates a chain of 29 hospitals across 16 cities in the country. The number of beds in these hospitals is 8,300.

Manipal provides services to 50 lakh patients

Manipal Group Chairman Ranjan Pai said in the statement, “We are very pleased that Temasek is acquiring a significant stake in Manipal Health Enterprises.” Along with the scenario, a sense of social responsibility is also necessary. The Bangalore-headquartered Manipal Hospital caters to 50 lakh patients in a year. It has 29 hospitals in its network.