Manipal, Parkway deal hits roadblock
The Singapore-headquartered Parkway Health’s move to acquire stake in Manipal Hospital has hit a roadblock following differences over the valuation figures, sources said.
By Boby Kurian & PP Thimmaya, ET Bureau |
BANGALORE: The biggest deal in India���s healthcare sector has become a casualty of the strained valuations in a turbulent market. The Singapore-headquartered Parkway Health���s move to acquire stake in Manipal Hospital has hit a roadblock following differences over the valuation figures, sources said.
Private equity giant Texas Pacific Group (TPG)-controlled Parkway, which operates a chain of luxury hospitals across South East Asia, was expected to acquire around 30 per cent stake in Manipal for about Rs 500 crore. When contacted, Manipal Hospital CEO R Basil didn���t comment adding that they are were still in talks with many players.
It is believed that Manipal was expecting a valuation close to Rs 2,000/2,500 crore for the stake sale. Besides valuation, sources added, issues pertaining to shared management functions and the roadmap also posed problems. The market meltdown and tightening liquidity has squeezed valuation numbers across businesses and has badly hit the fund-raising plans of several hospitals.
Private equity giant Texas Pacific Group (TPG)-controlled Parkway, which operates a chain of luxury hospitals across South East Asia, was expected to acquire around 30 per cent stake in Manipal for about Rs 500 crore. When contacted, Manipal Hospital CEO R Basil didn���t comment adding that they are were still in talks with many players.
It is believed that Manipal was expecting a valuation close to Rs 2,000/2,500 crore for the stake sale. Besides valuation, sources added, issues pertaining to shared management functions and the roadmap also posed problems. The market meltdown and tightening liquidity has squeezed valuation numbers across businesses and has badly hit the fund-raising plans of several hospitals.
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