CDPQ, Temasek, Warburg in talks to buy stake in TPG’s Asia healthcare platform

MUMBAI: Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), Singapore’s sovereign fund Temasek Holdings Pvt. Ltd and American PE fund Warburg Pincus LLC are in talks to buy a minority stake in Asia Healthcare Holdings, a healthcare platform set up by US-based private equity fund TPG Growth, for $80-100 million, two people aware of the development said.

According to the first of the two persons cited above, who spoke on condition of anonymity, TPG is likely to sell 30-35% stake in Asia Healthcare. The deal, he added, is expected to value Asia Healthcare at $285-300 million (₹1,800-2,000 crore).

Asia Healthcare holds TPG Growth’s investments in Bengaluru-based Rhea Healthcare Pvt. Ltd, which operates a network of mother and child care centres in India under the Motherhood brand; and Cancer Treatment Services International (CTSI), a network of single-speciality facilities across India. Asia Healthcare is headed by Vishal Bali, a senior healthcare adviser to TPG Growth in Asia and a former group CEO at Fortis Healthcare.

Asia Healthcare is in talks to raise $100 million by selling a significant minority stake, and has hired Kotak Investment Bank to handle the transaction, Mint reported last week.

Spokespersons for TPG Growth, CDPQ and Temasek declined to comment. Mails sent to Warburg Pincus went unanswered.

The healthcare delivery system in India will require an investment of around $245 billion over the next 20 years, according to a recent PwC report.

Venture capital and private equity investors’ interest in India’s healthcare sector rose in the past five years, with transaction value increasing from $94 million in 2011 to $1.2 billion in 2016 – a jump of over 13.5 times, the report said. India needs to add 3.6 million beds, 3 million doctors and 6 million nurses over the next 20 years, it added.