IHH bid values Medanta at Rs5,500-5,700 crore


Malaysia’s IHH Healthcare Bhd has submitted a bid to purchase a controlling stake in Medanta-The Medicity tremendous specialty hospital, two folks conscious of the event stated. The bid values the premier hospital at Rs5,500-5,700 crore, the primary of the 2 folks stated on situation of anonymity.

US-based non-public fairness fund Carlyle Group owns 27% in Gurugram-based Medanta, whereas Singapore’s Temasek Holdings Pte holds 18%. Cardiac surgeon Naresh Trehan, his household and Medanta co-founder Sunil Sachdeva personal the remaining.

The deal, if it goes by way of, would be the newest in India’s hospital sector, which has seen latest transactions comparable to KKR’s Rs1,300 crore funding in Radiant Life Care.

Temasek can also be more likely to submit a bid for a majority stake in a number of weeks, stated the second individual on situation of anonymity.

Spokespersons for IHH, Temasek and Carlyle declined to remark. An e-mail despatched to Trehan went unanswered.

IHH, Asia’s largest healthcare group, has been seeking to purchase Fortis Hospitals for the final couple of years to broaden its presence in India. It could purchase Fortis shares from the general public and banks, Mint reported final week. Presently, 80% of Fortis’s shares are with the general public, whereas 20% of pledged promoter shares are held by lenders Sure Financial institution Ltd and Axis Financial institution Ltd.

The Malaysian hospital operator already has a powerful presence in India, which it entered in 2015 by shopping for a 51% stake in Continental Hospitals Ltd for Rs300 crore and a 74% stake in International Hospitals Pvt. Ltd for Rs1,280 crore.

In 2013, Carlyle Group acquired a 27% stake in International Well being Pvt. Ltd, which owns, manages and operates Medanta, whereas Temasek purchased its 18% stake owned by Punj Lloyd Ltd in International Well being in 2015.

Nonetheless, the hospital has seen a drop in its income after a number of main docs left within the final couple of years, stated the second individual.

High docs who left Medanta and joined Fortis embrace Dr. Rajesh Ahlawat, who was chairman of Institute of Kidney and Urology; Dr. Vijay Kher, who was chairman, nephrology and renal transplant drugs; and Padma Shri winner Dr. Ashok Rajgopal, a number one knee and hip substitute surgeon who was chairman of Medanta’s Bone and Joint Institute. Dr. Gagan Gautam, who was head of urologic most cancers surgical procedure and robotic surgical procedure, moved to Max Hospital in Saket.

Trehan was initially a valuation of $1-1.2 billion (Rs6,500-7,500 crore) for Medanta a yr in the past, however a fall in income has hit the valuation, stated the second individual. The corporate’s income figures couldn’t be independently ascertained. Medanta has additionally suspended its $250-300 million preliminary public providing plan, he added.

Value regulation of cardiac stents and knee caps has additionally introduced down the income of hospitals throughout India.

In August, drug pricing regulator Nationwide Pharmaceutical Pricing Authority (NPPA) capped the costs of knee implants, decreasing product costs by as a lot as 70%. NPPA had introduced cardiac stents beneath worth management in February to make them inexpensive. The value of drug eluting stents have been slashed to about Rs30,000 from as a lot as Rs2 lakh.

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