India's Manipal Health set to buy majority stake in Medica Synergie for $151 million, source says
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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)
