GOLDMAN EYES MINORITY STAKE IN MANIPAL’S HOSTEL BIZ
Global financial institu tion Goldman Sachs Inc. is in talks to acquire a minority stake in Manipal Integrated Services Pvt. Ltd (MIS), which runs the food services and hostel business of the Manipal Education and Medical Group (MEMG), accord ing to two people aware of the development.
Goldman Sachs will invest about ₹250-300 crore to acquire about 45-49% stake in the hostel business, one of them said on con dition of anonymity.
It will make the investment through its arm, Principal Strate gic Investments (PSI) Group.
Last year, the facility manage ment and catering businesses of MIS was demerged and sold to Fairfax-controlled business ser vice provider Quess Corp. Ltd (formerly IKYA Human Capital Solutions Ltd), for ₹220 crore.
IDFC Alternatives Ltd, which had invested ₹100 crore in MIS in 2012, also made an exit through the Quess deal.
Mis’shostelbusinessprovides living facilities for more than 6,000 students on Indian cam puses and 1,000-plus students overseas under the brand name Yoho. Yoho has hostels in Benga luru, Mangaluru, Jaipur, Pune Sikkim, Vijayawada, Salem Singapore, Malaysia and Dubai
MEMG’S MD and CEO Ranjan Pai and a Goldman Sachs spokes person declined to comment.
“Promoters are in early dis cussions with a couple of leading PE funds including Goldman Sachs. It’s not sure when the dea is expected to close,” said the per son cited above.
Goldman Sachs has an expo sure to the hospitality space in India through investments such as its $66 million in hospitality firm SAMHI Hotels Pvt. Ltd in 2016 and $10 million in pan-asian casual-dining chain Azure Hospi tality Pvt. Ltd in 2015.
Some of its major investments include $350 million in Renew Power Ventures Pvt. Ltd, a wind power producer; ₹900 crore in Piramal Realty, the realty arm of the Piramal Group; and $250 mil lion jointly with Nitesh Estates Ltd in a real estate project.
Founded in 1953, the Bengalu ru-based Manipal group runs its own hospital chain Manipal Health Enterprises Ltd and edu cational institutes. The group has attracted many global and