If TPG Capital has its way then we might soon see India’s biggest healthcare deal, the product of which is likely to stand toe-to-toe to current market leader Apollo Hospitals . The global investor is trying to effect a merger between Fortis Healthcare and Manipal Health Enterprises, which will create the country’s biggest healthcare group, reports the Times of India.
Sources told the newspaper that private equity investor True North plans to offload its 18 percent stake in Manipal and has reached out to TPG and Singapore’s Temasek Holding. TPG currently owns 22 percent in Manipal. Responding to the query a TPG spokesperson said, “We follow a strict disclosure policy and hence are unable to confirm or deny these suggestions.”
In 2016, a Singapore arbitration panel had asked billionaire siblings Malvinder and Shivinder Singh of Religare to pay Japanese firm Daiichi Sankyo Rs 2,500 crore for withholding critical information while selling Ranbaxy Laboratories. Daiichi Sankyo had moved to the Delhi High Court when news came suggesting that the Singh brothers will be selling their stake in Fortis Healthcare. Daiichi had raised concerns that this will lead to asset dilution which is seeks to receive as part of arbitration verdict.
“Though the two brothers and their holding company have contested the ruling, it would prevent them from transferring majority control straight away. TPG will pursue a merger to create a healthcare behemoth, but that’s dependent on the progress they make with Fortis,” the sources added.