Temasek buying 72% stake in Indian hospital chain

Investment firm Temasek Holdings is set to acquire a 72 per cent stake in India's Care Hospitals, media reports said yesterday. Care Hospitals, which has 16 hospitals serving nine cities across India, is the country's fifth-largest private healthcare network.

Temasek is buying the stake from US private equity firm Advent International for 18 billion rupees (S$378 million), according to The Economic Times and Times of India.

Temasek had teamed up with TPG Growth to form a consortium to pursue Care Hospitals, but TPG opted out of the race a few weeks ago owing to pricing and other unspecified matters.

The purchase will arguably be the first time that Temasek has acquired a controlling stake in an Indian company on its own, said The Economic Times.

Earlier this year, Temasek linked up with Advent to buy the consumer division of Crompton Greaves, an Indian firm involved in the design, manufacturing and marketing of products related to power generation, transmission and distribution.

Temasek is also stepping up activity in India's technology space. Last month, its venture capital arm, Vertex Venture Holdings, said it plans to invest between US$5 million (S$7 million) and US$6 million each in three to four Indian companies over the next 12 months.

Media reports in October also said that Temasek, in partnership with US-based private equity firm General Atlantic, is in talks to acquire a stake in BillDesk, an online payments company in India.

India has been a bright spot this year amid a slowing global economy, with growth for the year estimated to come in at 7.4 per cent, outpacing China.

Its steady economic performance, coupled with Indian Prime Minister Narendra Modi's reforms, has made India a beacon for international investors this year.

Singapore sovereign wealth fund GIC has been among those active there this year, especially in the real estate sector.

At the start of the year, GIC teamed up with New York-based private equity fund KKR to set up a real estate lending platform in India.

It is also jointly developing an information technology special economic zone of more than three million sq ft in Bangalore with India's Brigade Group, and has partnered India's DLF Home Developers to invest in two integrated projects in New Delhi.

In October, GIC partnered New York-based real estate company Tishman Speyer to co-own an office development project in Hyderabad.

A version of this article appeared in the print edition of The Straits Times on December 16, 2015, with the headline 'Temasek buying 72% stake in Indian hospital chain'. Print Edition | Subscribe