The sell-off process of Maharashtra’s largest hospital chain, Sahyadri Hospitals, has entered the last lap, with Canadian pension fund Ontario Teachers’ Pension Plan Board (OTPP) and Max Healthcare Institute NSE -0.44 % emerging as the frontrunners. The deal will value Sahyadri Hospitals, owned by private equity fund Everstone Capital, at ₹2,500-2,700 crore, said people aware of the development.
Another player in discussions was Fortis Healthcare NSE 1.28 %, they said.
Singapore-based Ripple Dot is advising Everstone to find a buyer.
A spokesperson for Everstone declined to comment, while emails sent to OTPP and Max did not elicit any responses till press time on Tuesday. Founded in 1994, Pune-headquartered Sahyadri Hospitals has seven hospitals in Pune, and one each in Nashik and Karad. It has more than 900 beds and 200 ICU beds, 2,000 clinicians and 2,600 supporting staff.
Everstone Capital bought Sahyadri in 2019 from leading neurosurgeon Charudutt Apte. Though the financial terms were not disclosed at the time, ET had reported the purchase cost at ₹1,000 crore.
In 2015, Everstone had exited multispecialty tertiary hospital chain Global Hospitals by selling its minority stake to Malaysia’s Parkway Hospital – which had acquired a 74% stake in total for an equity value of ₹1,800 crore.
OTPP is the administrator of Canada’s largest single-profession pension plan, with $189 billion in net assets as on December 31, 2021.
Though OTPP has a decent exposure in the Indian infrastructure space, it couldn’t tap the private equity investment opportunities in India yet. In April, OTPP had invested up to $175 million in KKR & Co’s India road investment platform.
Max Healthcare operates 17 healthcare facilities with 3,400 beds across the National Capital Region, Haryana, Punjab, Uttarakhand and Maharashtra.
Almost 85% of Max’s bed capacity is in metro and tier-1 cities. If the Sahyadri acquisition is materialised, Max will get a hold in new markets in Maharashtra. Radiant Life Care, a hospital platform promoted by Abhay Soi and PE fund KKR, had acquired a majority stake in Max Healthcare Institute from Max India NSE -1.34 % in 2018. At present, KKR and Soi together hold 50.64% of Max Healthcare. TechiLive