Temasek-backed Manipal has reached out to banks for financing

Temasek-backed Manipal has reached out to banks for financing

In a significant move to bolster its healthcare operations, Temasek-backed Manipal Health Enterprises has reached out to banks for financing to complete its acquisition of a majority stake in Sahyadri Hospitals. The acquisition, valued at approximately $700 million, is set to expand Manipal's presence in western India and challenge the dominance of Apollo Hospitals Enterprise Ltd. [1]

Manipal, a conglomerate with interests in healthcare, education, and insurance, is seeking to leverage economies of scale to enhance its competitive position in the Indian market. The acquisition of Sahyadri Hospitals, which operates 11 hospitals with more than 1,400 beds in Maharashtra, will add 11 hospitals to Manipal's portfolio, increasing its total bed count to 12,000. This strategic move aligns with Manipal's strategy to augment its pan-India footprint [2].

The acquisition is part of a broader trend of consolidation in India's healthcare sector, driven by scale advantages, undervalued assets, and the exit strategies of private equity giants. Manipal's aggressive acquisition strategy, which includes the purchase of Sahyadri and other healthcare providers, positions the company as a formidable player in the industry [3].

The completion of this transaction is contingent upon regulatory approvals. Ontario Teachers', which holds a 98.9% stake in Sahyadri, has engaged a team of advisers to facilitate the deal, including Jefferies, Latham & Watkins, Trilegal, and EY. The acquisition is expected to strengthen Manipal's financial position and set the stage for a potential listing, as the company had paused its initial public offering plan to focus on the acquisition [4].

Temasek, a Singaporean state-owned investor, has been a significant supporter of Manipal's expansion plans. The acquisition of Sahyadri is the latest in a series of investments by Temasek in the healthcare sector, reflecting its growing interest in the Indian market [5].

The acquisition of Sahyadri Hospitals underscores the growing investor interest in the Indian healthcare sector, which faces challenges related to infectious diseases and chronic ailments like diabetes and cardiovascular issues. The deal highlights the potential for strategic acquisitions to reshape the valuation dynamics and growth trajectory of healthcare providers in the country [3].

References:
[1] https://news.bloomberglaw.com/mergers-and-acquisitions/temasek-backed-manipal-health-acquires-sahyadri-for-700-million
[2] https://www.bloomberg.com/news/articles/2025-07-10/manipal-hospitals-buys-sahyadri-for-700-million-from-canada-s-otpp
[3] https://www.ainvest.com/news/750-million-signal-manipal-sahyadri-acquisition-india-healthcare-consolidation-surge-2507/
[4] https://finance.yahoo.com/news/manipal-hospitals-acquire-majority-stake-094111779.html
[5] https://www.investing.com/news/stock-market-news/temasek-sees-more-opportunities-in-europe-after-investing-78-billion-in-region-last-year-4130281