India's Manipal Health set to buy majority stake in Medica Synergie for $151 mln, source says
14/03/2024 14:49
By Rishika Sadam and Leroy Leo
BENGALURU, March 14 (Reuters) - India's Manipal Health
is set to buy a 93% stake in Medica Synergie as early as April
for about 12.50 billion rupees (about $151 million), according
to a source familiar with the matter, uniting the two
Temasek-backed hospital operators.
Medica Synergie will be integrated into the Manipal
portfolio and rebranded, the source said on condition of
anonymity. The Singapore-based investment firm holds a 51% stake
in Manipal Health and an 87% stake in Medica Synergie.
"Over 5,000 healthcare professionals of Medical Synergie
will be added to Manipal's capacity. Medica Synergie's 1,200
beds will also be an addition," the source added.
Manipal Health is one of India's biggest hospital chains,
with 33 hospitals, more than 9,500 beds and about 27,000
healthcare professionals and staff. Meanwhile, Medica Synergie
has a presence in eastern Indian cities, including Kolkata,
Siliguri and Ranchi.
Medica Synergie and Manipal Health did not immediately
respond to Reuters' requests for comment.
"Manipal has reached out to all the parties holding stakes
in Medica Synergie, even the ones that hold minor stakes," the
source said.
An improving economy is driving strong demand for
healthcare-related services in India's smaller cities and towns,
driving big hospital chains to tap into the boom by mostly
acquiring well-equipped facilities.
In its latest deal, Manipal Health bought FMCG-to-realty
conglomerate Emami Group's AMRI Hospitals, adding 1,200 beds to
its capacity.
India's healthcare market is expected to grow nearly
three-fold to $458 billion in 2030, according to global
consulting firms Boston Consulting Group and B Capital,
presenting strong growth opportunities for the sector.
($1 = 82.8290 Indian rupees)
(Reporting by Rishika Sadam, Leroy Leo and Kashish Tandon in
Bengaluru; Editing by Anil D'Silva)
((Kashish.Tandon@thomsonreuters.com; 8800437922;))