Manipal, EQT in Lead for INR 6,838 Cr Sahyadri Deal

Manipal Hospitals, along with Swedish private equity major EQT, have emerged as the leading contenders to acquire OTPP-owned Sahyadri Hospitals, backed by AsterDM Quality Care.

Temasek and Dr Ranjan Pai led Manipal Hospitals and Swedish PE major EQT have emerged as the two lead contenders in the race to acquire Sahyadri Hospitals, following the submission of binding bids.

Blackstone and TPG-backed AsterDM Quality Care India and Malaysia’s IHH, operating Fortis Healthcare and Gleneagles, are other suitors in the competitive healthcare range.

Rival PE firm KKR, has since stepped back but remains active in the sector. Notably, on June 2, KKR announced a $600 million credit facility to the diversified Manipal Group, marking its largest India credit deal to date.

The proposed acquisition targets Pune-based Sahyadri Hospitals, Maharashtra’s largest private multi-speciality hospital chain, currently owned by Canada’s Ontario Teachers’ Pension Plan (OTPP).

The Pune-based asset, the largest private multi-speciality hospital chain in Maharashtra, is controlled by Canadian pension fund Ontario Teachers' Pension Plan ( OTPP), which is betting big on India to achieve its target of hitting $300 billion in net assets by 2030.

South-focused and Temasek-backed Manipal Hospitals, an IPO- bound firm, has grown inorganically via deals such as Vikram Hospitals and Columbia Asia's Indian operations and has expressed interest earlier in the sale process of hospital chains like KIMS Healthcare.

Meanwhile, Swedish PE firm EQT, backing AIG Hospitals and Indira IVF, has invested over $6 billion in India in the past 21 months. It now aims to replicate its IT success through similar control deals in healthcare and financial services.

Rival private equity firm KKR, which backs Baby Memorial Hospital and cancer care hospital firm HCG, had also expressed interest earlier in the Sahyadri Hospitals transaction.

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