Manipal-TPG Capital set to buy Medanta Hospitals soon, says report

Manipal Hospitals and buyout firm TPG Capital are likely to announce acquisition of Medanta Hospitals as soon as next week, Mint reported, citing sources aware of the development.

The deal may be the largest acquisition in the Indian healthcare industry, with the transaction valued at Rs 5,800-6,000 crore, one of the sources told Mint, adding, “The two parties are expected to sign definitive agreements soon."

Private equity firms Carlyle Group and Temasek, the primary investors in Dr. Naresh Trehan's Medanta chain of hospitals, own about 27 percent and 18 percent, respectively, said the report, adding the rest is held by Trehan and co-founder Sunil Sachdeva.

Carlyle Group will exit the company after the transaction goes through, added the report.

Comments sought by Mint from Ranjan Pai, promoter of Manipal Education and Medical Group; TPG and Carlyle did not elicit a response, while Temasek and Medanta responded saying they do not comment on market speculation.