Singapore’s Temasek-backed Sheares Healthcare India has signed a definitive agreement to acquire an additional 41% stake in Ranjan Pai-led Manipal Health Enterprises. Upon completing the transaction, Manipal Group will hold about 30% of Manipal Hospitals, while Shears will retain 18%.

On December 27, 2022, Moneycontrol reported that Temasek was buying shares from the promoter family and other investors TPG and NIIF in a proposed deal to gain a controlling stake in the hospital chain, which would value Manipal Hospitals between Rs 40,000 crore and Rs 42,000. Later on, April 8, Moneycontrol reported that the two parties had signed an agreement.

Leading global alternative asset manager TPG, which first invested in Manipal Hospitals through TPG Asia VI in 2015, will exit entirely but take an 11% stake through its new Asian fund, TPG Asia VIII. According to a statement released by the healthcare chain, the National Investment and Infrastructure Fund (NIIF) will exit its stake in Manipal Hospitals.

Allegro Capital Private Limited acted as financial advisor to the transaction. “We are delighted that Temasek has acquired a substantial stake in Manipal Health Enterprises and supports the management team in realising the platform’s full potential. Investing in healthcare requires a long-term perspective and sensitivity to social responsibility,” said Dr Ranjan Pai Manipal Group, Chairman.

Apart from Manipal Hospitals, Sheares India is also a majority investor in Medica Synergie, a Kolkata hospital chain. Temasek also owns about 16% of Global Health, the operator of Medanta Hospital, which is listed on the domestic exchange.