Manipal eyes Medanta after failed Fortis Healthcare bid

The TPG Capital and Manipal Health Enterprises combine is in talks to buy a majority stake in hospital operator Medanta from heart surgeon Naresh Trehan and other investors, two people close to the development said. While the discussions are still on and it is yet to submit a bid, Manipal-TPG is likely to offer a valuation of ₹6,000 crore for Medanta, one of the two people said. TPG-Manipal is the only party that is actively pursuing Medanta after Malaysia’s IHH Healthcare Bhd withdrew its non-binding bid following its acquisition of the hospital business of crisis-ridden Fortis Healthcare Ltd in July, outbidding TPG-Manipal. IHH submitted a bid for Medanta, valuing the firm at around ₹5,700 crore. TPG has been actively looking to build up Asia Healthcare Holdings—its healthcare platform. Medanta’s acquisition will help the private equity firm diversify its healthcare investments, the second person said, seeking anonymity.

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