2024-12-05 05:30:17 :
Singapore’s GIC is close to increasing its stake in Asia Healthcare Holdings (AHH), four people familiar with the matter said, with the healthcare platform likely to go public within the next year or two.
One of the four people, who spoke on condition of anonymity, said the Singapore sovereign fund will acquire an additional 15% stake from TPG, the majority shareholder of the AHH platform. After the transaction is completed, GIC will become the largest shareholder of the platform.
AHH is a healthcare platform that owns Motherhood Hospitals, Asian Institute of Nephrology and Urology, and Nova IVF, and is majority-owned by global private equity firm TPG. AHH was founded in 2017 and is led by Vishal Bali, head of Asia healthcare at TPG Growth and former CEO of Fortis Healthcare and Wockhardt Hospitals.
TPG invested in AHH through its equity investment arm, TPG Growth, and is selling some of its shares to return cash to investors, the second person said.
A third person said the investment could value AHH at $800-900 million. “The transaction is currently in the process of being recorded,” the person added.
Spokespersons for TPG Growth and AHH did not respond to requests for comment. Mint Query. GIC declined to comment.
Sumit Gupta, healthcare analyst at Centrum Broking, noted that several Indian hospitals as well as diagnostics, medical equipment and pharmaceutical distribution companies have gone public since the pandemic began. “This trend has been driven by the exit of private equity sponsors and a favorable environment for healthcare companies, driven by rising demand and strong growth prospects… Overall, in the healthcare sector, there has been There are more than 20 IPOs with a total size of $35,000 crore, he added.
ALSO READ | KKR, GIC and DigitalBridge race to acquire Carlyle Nxtra stake for $700 million
GIC invested US$170 million ( $1,280 crore) to acquire a minority stake in AHH from TPG in February 2022. After this round of financing, GIC holds approximately 40-45% of AHH’s shares, management has an employee stock ownership plan, and TPG Growth retains a majority stake.
Through the transaction, TPG is expected to become a minority shareholder in the healthcare platform, while GIC will increase its stake to majority owner. “The deal may also include guaranteed return provisions related to a potential IPO,” a fourth person told Mint.
AHH acquired a majority stake in Asian Institute of Nephrology and Urology in September 2023 for $6 billion rupees. Earlier in May 2019, TPG Growth sold Cancer Treatment Services International to NYSE-listed Varian Medical Systems for $283 million, which also provided TPG with some liquidity. .
“With an increasing focus on holistic and integrated healthcare models, organizations are seeking mergers and acquisitions to enhance their service portfolios, streamline operations and improve patient outcomes – a trend that is less evident in many other industries. Singleton Majors are leading the way in this space,” said Manmohan Tiwana, managing director and CEO of Wodehouse Capital Advisors, a major mid-market investment bank.
India’s healthcare services market is hugely valuable $6 trillion, said Vipin Singhal, associate director at Anand Rathi Investment Bank. “Favorable demographic changes, rising proportion of non-communicable diseases and increasing affordability are key structural drivers for the industry. In turn, these will lead to a CAGR of approximately 15% $It reached US$7.7 trillion in fiscal year 22-25. “
and read | Gentari and GIC to invest $1.75 billion in AM Green unit
Follow us On Social Media Twitter/X
