Singapore state investment firm Temasek has cut its stake in Manipal Health Enterprises, less than a year after taking control of India's second-largest hospital chain.
Temasek has sold an 8% stake in the company behind Manipal Hospitals to a consortium of new investors including Mubadala Investment Company, Novo Holdings, and the California Public Employees' Retirement System (CalPERS).
The announcement comes about a fortnight after VCCircle reported that Mubadala, a sovereign wealth fund of the emirate of Abu Dhabi, would pick up a stake in Manipal Hospitals.
“Given the ever-increasing demand for high-quality hospital care across India, we look forward to supporting Manipal’s growth journey in the years ahead,” Camilla Macapili Languille, head of Life Sciences at Mubadala.
The deal marks Mubadala’s first investment in India in almost 18 months. The wealth fund has in the past bet on companies such as Innovacer, Cube Highways, Tata Power Renewable, Reliance Retail and Jio Platforms.
Temasek will remain as the majority stakeholder in the hospital company, the firm said, without disclosing financial terms of the transaction.
The deal comes barely nine months after Temasek, one of the two Singapore state investment firms that emerged as the most active private equity-style investors in India last year, struck a $2 billion deal to buy an additional stake in Manipal Hospitals. It held a stake of over 59% in the company after buying the additional stake from TPG, Manipal Group and India’s National Investment and Infrastructure Fund.
If Temasek sold part of its stake at the valuation at which it bought the majority stake last year, the deal size would be worth around $400 million, back-of-the-envelope calculations suggest.
Bengaluru-based Manipal Hospitals operates a network of more than 30 hospitals with a bed capacity exceeding 9,500.
Mubadala has a portfolio spanning six continents and valued at $276 billion. Denmark’s Novo Holdings manages the assets of the Novo Nordisk Foundation. It is the controlling shareholder of Novo Nordisk A/S and Novozymes A/S. CalPERS manages pension and health benefits for over 1.5 million California public employees, retirees, and their families.
