TPG Capital set to acquire India’s Medanta

The battle to take over Global Health, which owns, manages and operates the Medanta hospital chain, is hotting up again. This time global private equity firm TPG Capital is said to be in exclusive talks to acquire the multi-specialty medical institutes.

Medanta operates eight hospitals in Gurugram, Indore, Ranchi, DLF Cybercity, South Delhi, Delhi Airport, Lucknow, and Sri Ganganagar

Indian financial daily Mint reports that negotiations are advanced and exclusive with a valuation of US$843.6 million for the hospital.

If the deal goes through, it will allow US investment firm The Carlyle Group to exit. It currently holds a 27% stake in the group.

Medanta has been seen as ripe for the picking for some time. Last year IHH Healthcare, Asia’s largest healthcare company, was reported as offering up to US$875 million for a controlling stake and there was also interest from Singapore government investment company Temasek, which holds an 18% stake.

The rest of the ownership of Medanta is with the founders.

A bid from TPG Capital is not especially surprising. News of its initial interest in Medanta emerged in October last year. This came after IHH Healthcare pipped it to the post to take over Fortis Healthcare, the country’s second largest private hospital chain, with a bid of US$584.1 million last summer.

TPG Capital already has stakes in Manipal Hospitals Group, Cancer Treatment Services International and Bengaluru-based Rhea Healthcare.