Temasek Holdings reduces stake in MHE; sells 8% shares

Temasek Holdings, the investment arm of the Singapore government, has reduced its stake in Manipal Health Enterprises (MHE) by selling up to 8% stake in the company to a clutch of investors, two people aware of the transaction said.

The investors include Mubadala Investment Company, Novo Holdings, and the California Public Employees’ Retirement System (CalPERS), according to a company announcement.

This comes less than a year after Temasek acquired stake from Manipal founder Ranjan Pai and other investors such as NIIF and TPG to raise its shareholding to around 59%.

Despite this sale, Temasek will continue to hold a majority stake in MHE after the closing of the transaction. “The stake was sold at the same valuation as the last round,” said another person with knowledge of the deal.

In April last year, Temasek had acquired 41% stake in Manipal for more than $2 billion, valuing it at nearly $4.8 billion. “The idea was to de-risk its investment while continuing to hold a majority,” the second person added.

Mint had in September reported that Temasek Holdings is in talks with several sovereign funds, including Abu Dhabi’s Mubadala Investment Co, to pare its stake in Manipal Health Enterprises Ltd to de-risk its holdings.

“Manipal is one of India’s leading healthcare networks, distinguishing itself through its commitment to clinical excellence, its strong patient-centric approach, and its impeccable standards of corporate governance,” said Camilla Macapili Languille, head of Life Sciences at Mubadala in the release.

“Given the ever-increasing demand for high-quality hospital care across India, we look forward to supporting Manipal’s growth journey in the years ahead.”

Currently, Bengaluru-based Manipal has a pan-India footprint of more than 30 hospitals with over 9,500 beds and more than 5,000 doctors. LiveMint