GIC invests US$150 million to acquire majority stake in Asia Healthcare Holdings

MUMBAI: Singapore sovereign fund GIC will invest an additional $150 million in Asia Healthcare Holdings (AHH) ahead of a potential initial public offering (IPO). The investment will make GIC the largest shareholder of AHH, following GIC’s initial $170 million investment in the platform in February 2022.

The investment could value AHH at $800-900 million, according to a person familiar with the matter.

With the latest deal, global private equity firm TPG will become a minority shareholder in the healthcare platform, while GIC will hold a majority stake, according to a news release from the healthcare platform on Wednesday.

AHH owns Motherhood Hospitals, Asian Institute of Nephrology and Urology and Nova IVF. It is a healthcare platform focusing on single specialty hospitals. TPG holds a majority stake.

Vishal Bali, executive chairman of AHH, said: “With this investment, our plan is to continue to grow the specialties in which we have invested, namely the maternal and child area, the in vitro fertilization area and the urology and nephrology area.” Mint. “We will continue to look for other opportunities in single areas of expertise,” he added.

Mint The investment was first reported on December 5. TPG invested in AHH through its equity investment arm, TPG Growth, and is selling some of its shares to return cash to investors.

“As long-term investors, we are confident in India’s single-specialty healthcare sector, which has strong growth momentum driven by rising per capita income, urbanization, heightened awareness of specialty care and improving supply of high-quality clinics. Choo Yong Cheen, chief investment officer of GIC Private Equity, said in a press release: “AHH’s potential to expand into new market segments positions it for continued success. “

To date, AHH has invested approximately $300 million in hospital chains in oncology, maternal and child care, urology and nephrology, as well as in vitro fertilization and fertility. Bali said GIC’s $150 million investment will also fuel its expansion into new specialties such as gastrointestinal tract, diagnostics and pathology.

The platform will continue to expand its existing verticals into tier-2 cities. “This is a pan-India drama, happening in metros as well as tier-II cities.

Bali declined to give details on when the platform plans to launch the IPO process, but said: “Profitability is not a concern for AHH ahead of an IPO that may occur in the next few years.”