Manipal and Fortis to raise funds to bid for Sahyadri Hospitals
Indian companies Manipal Health Enterprises and Fortis Healthcare are in discussions with international financial institutions to secure financing to support their acquisition efforts, as the bidding deadline of 22 June for the multispeciality hospital chain Sahyadri Hospitals approaches.
The lenders include DBS Group Holdings, Mizuho Bank, Deutsche Bank, HSBC Holdings, and Barclays, people with knowledge of the matter said.
The financing, which aims to back respective bids of the two companies, ranges from Rs30bn to Rs50bn ($347.61m to $579.35m).
Aster DM Healthcare, another contender in the bidding process, has not yet finalised its financing plans, according to sources.
The sale of Sahyadri Hospitals is being orchestrated by Ontario Teachers’ Pension Plan (OTPP), which holds a 98.9% stake in the hospital chain.
OTPP, with more than $3bn in investments, appointed Jefferies to manage the sale earlier this year.
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By GlobalDataThe Canadian pension fund had acquired Sahyadri Hospitals at a valuation of Rs25bn from Everstone Capital, which had previously purchased the chain from its founder, Dr Charudutt Apte, in 2019 for Rs10bn.
Sahyadri Hospitals, founded in 1996 by neurosurgeon Dr Apte, operates 11 hospitals with 1,300 operational beds across Pune, Nashik, and Karad in the state of Maharashtra.
The healthcare provider is part of several government health schemes, including Ayushman Bharat and the Central Government Health Scheme (CGHS).
This acquisition comes at a time when India’s hospital sector is undergoing consolidation.
In February, Fortis Healthcare signed definitive agreements to acquire Shrimann Superspecialty Hospital in Jalandhar, Punjab, India.
The acquisition, from partnership company inter alia Shriman Enterprises through a slump sale, is part of Fortis’ strategy to expand its network in the region.
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