BackMubadala in talks with Temasek to acquire stake in India's Manipal Hospitals: Report
Mubadala in talks to buy stake in Manipal Hospitals, its first investment in Indian healthcare sector.
PremiumMubadala is in discussions to buy a stake of less than 10% in Manipal Hospitals in India. If successful, this would be the Abu Dhabi sovereign fund's first investment in the expanding Indian healthcare sector, reported Reuters.
According to Reuters news report, the fund is in talks with Singapore's Temasek, which spent $2 billion in April to increase its share in Manipal from 18% to 59% in the country's largest healthcare sector acquisition.
Two of the sources told Reuters that the negotiations to buy the tiny stake from Temasek are taking place at the same $5 billion valuation as the April sale, which suggests a value of up to $500 million for the Mubadala-Temasek stake deal.
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“Temasek said it does not comment on market speculation, while Mubadala declined to comment. Manipal did not respond to queries. Reuters is the first to report the talks," said Reuters in its report.
Also Read: Manipal acquires 84% stake in AMRI for ₹2,300 crore
The first of the sources told Reuters that the negotiations between the Singapore state investment company and Mubadala, which oversees $276 billion globally, are still in the early stages. According to the second source, Temasek is eager to sell a small amount of stake because it "wants to de-risk a little" and values are favourable.
The meetings take place as investor interest in India's health care sector rapidly increases in the wake of the COVID-19 outbreak amid a rise in service demand. According to Reuters report, PwC predicts that India's $48 billion private healthcare market will expand 12% to 14% annually.
According to a Reuters report, Mubadala has made $4 billion in investments in India, notably in the telecom and retail companies owned by billionaire Mukesh Ambani and the renewable energy division of Tata Power.
Manipal, which has its headquarters in Bengaluru, India's tech centre, operates 29 multi-specialty hospitals, mostly in the south of the country, and claims to be the nation's second-largest chain. The organisation focuses on fields including cardiology, neurosurgery, and cancer care.
Also Read: KKR, Temasek eye stakes in Manipal Health
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