IHH Healthcare seeks control of Medanta; HDFC, Baring eye Can Fin Homes

By Keshav Sunkara

  • 20 Mar 2018
Credit: Mukul Mudgal/VCCircle

IHH Healthcare Berhad, majority-owned by Malaysian sovereign wealth fund Khazanah Nasional Berhad, has placed a bid to buy a controlling stake in Global Health Pvt. Ltd, the owner and operator of Medanta-The Medicity chain of multi-speciality hospitals, Mint reported, citing two people aware of the development.

Citing people, the report said the bid values the Naresh Trehan-founded company at Rs 5,500-5,700 crore.

Existing investor Temasek Holdings, a state investment firm based in Singapore, is also looking to get a controlling stake and may submit a bid the in next few weeks, the report added.

In January 2015, Temasek had bought a 17.74% stake in Global Health from early investor Punj Lloyd, which made a complete exit.

As on 31 March 2017, Trehan’s family and co-founder Sunil Sachdeva together owned around 55% stake in the Gurugram-headquartered Global Health. On the same date, private equity firm Carlyle group held 27.5% stake and Temasek 17.5% stake.

In another development, house-loan company HDFC Ltd and alternative asset management firm Baring Private Equity Asia are in separate talks to pick up a 30% stake in state-run Canara Bank’s housing finance arm, Can Fin Homes Ltd, The Times of India reported, citing people aware of the development.

Canara Bank may decide on the buyer later this week, the report added.

Can Fin Homes’ market value is around Rs 7,300 crore, as of the close of trading on Monday.

The value of Baring’s all-cash offer is equal to HDFC’s cash-and-stock proposal, according to the report.

HDFC is likely to offer upfront cash for 14% stake and offer shares in HDFC for the remaining 16% stake.

In March 2017, Singapore’s sovereign wealth fund, GIC Pte. Ltd, bought a 13.45% stake in Can Fin Homes from Canara Bank for Rs 753.77 crore ($113 million).

Canara Bank had then said that the deal was part of its plan to sell non-core assets.

Separately, Godrej Agrovet Ltd, the agri-business subsidiary of Godrej Industries Ltd, is looking to bid for bankrupt Ruchi Soya Ltd, Mint reported.

Citing people, the report said Godrej Agrovet is interested only in the palm oil business of Ruchi Soya and may bid along with partners interested in other units of the company.

Ruchi Soya is undergoing insolvency resolution initiated by the National Company Law Tribunal following petitions by creditors Standard Chartered Bank and DBS Bank.

Last week, The Hindu Business Line reported Ruchi Soya had received bids from 26 suitors including ITC, Patanjali Ayurved, Emami Group, Aion Capital Partners, and KKR.

Ruchi Soya sells food products and edible oils under the brands Nutrela, Mahakosh, Sunrich, Ruchi Gold and Ruchi Star.