Grapevine: Stake sale of Hero Future likely; China’s Fosun ends healthcare deal talks

By Ankit Agarwal

  • 15 Jul 2020
Credit: 123RF.com

Hero Future Energies Pvt. Ltd, which produces solar and wind energy, is exploring an opportunity to sell a stake and HSBC has been mandated to find a buyer, two people aware of the development told Mint. 

However, the size of the stake or the valuations are not known yet. 

Rahul Munjal-led Hero Future will use the proceeds for expansion.

In November last year, it sold close to 20% stake for $150 million to Abu Dhabi’s Masdar – also known as Abu Dhabi Future Energy Co. -- at a valuation of $750 million.

Prior to that in 2016, World Bank’s International Finance Corporation (IFC) invested $125 million.

Meanwhile, amidst heightened anti-China sentiments in the country Chinese conglomerate Fosun has pulled out of discussions for investments of up to $300 million (Rs 2,260 crore) across two healthcare companies -- a Mumbai-headquartered dialysis services chain and a Bengaluru-based hospital -- persons aware of the matter told The Economic Times.

Both deals were at an advanced stage, one of which is Apex Kidney Care Pvt. Ltd and the name of the Bengaluru-based hospital could not be ascertained.

Fosun first gained a foothold in India with its $1.1 billion acquisition of 74% stake in Gland Pharma in 2017. It is now looking to sell a fourth of its stake in Gland through an IPO.

Fosun’s objective in India will be to manage existing portfolio companies, said the persons, adding that the firm would go slow on fresh investments.