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Saturday, 19 December 2015 00:00

Singapore investor takes over Care Hospitals

India’s fifth largest private healthcare network, Hyderabad-based Care Hospitals, is set to acquire major share by Singapore investor Temasek. The deal for around Rs 1,800 crore in what is possibly the largest M&A deal in domestic healthcare delivery sector, people directly familiar with the matter said.

 Singapore investor Temasek is in the final stages of buying the 73% stake held by US-based private equity Advent International, which is due for announcement in the next fortnight. The transaction values Quality Care India,which runs 17 hospitals with 2,400 beds across nine locations under the Care brand, at over Rs 2,250 crore.  Temasek and Middle East fund Abraaj Capital were the final bidders vying for the acquisition. "Temasek's offer moved ahead of Abraaj and is poised to win but for unforeseen last-minute hurdles," one of the sources cited earlier in the report said. A team of medical professionals led by Dr B Soma Raju will continue to retain minority shares. Investment bank Moelis & Co is advising Advent on the sale process.

Temasek was partnering with TPG Growth for a joint bid initially, but has decided to strike the deal on its own now.Temasek's offer topped the rival bid from Abraaj Capital. Advent is expected to net slightly over two-times return from its investment in Care.Advent, which initially invested $110 million for a 60% stake, pumped in more money to help Care's expansion plans and increased its shareholding in the company. The hospital chain is poised to add 600 more beds in the near future through green field and brown field expansion, taking the overall count to 3,000 beds. Advent International declined to comment, when contacted. An emailed query to Temasek remained unanswered at the time of going to press.

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