The bidding process for Sahyadri Hospitals, a multispecialty hospital chain, is nearing its deadline of June 22. Interested bidders, including Manipal Health Enterprises and Fortis Healthcare, are in talks with foreign lenders to secure financing of up to Rs 5,000 crore to support their bids. The hospital chain, which operates 11 hospitals with 1,300 beds across Maharashtra, is being sold by Ontario Teachers’ Pension Plan (OTPP), which acquired a 98.9% stake in the company less than three years ago.
Manipal and Fortis are engaging with global banks such as DBS Group Holdings, Deutsche Bank AG, Mizuho Bank, HSBC Holdings, and Barclays to raise the necessary funds. Another potential bidder, Aster DM Healthcare, has yet to finalize its financing discussions. The acquisition of Sahyadri Hospitals is expected to be a significant deal in the Indian hospital sector, which has seen consolidation in recent times.
OTPP, which has over $3 billion invested in India, hired Jefferies to run the sale process earlier this year. The Canadian pension fund had acquired Sahyadri Hospitals from Everstone Capital at a valuation of Rs 2,500 crore. The hospital chain has a strong presence in Maharashtra, with facilities covering specialties such as cardiology, transplants, neurology, and critical care.
The bidding for Sahyadri Hospitals comes amid a surge in interest in the Indian hospital sector, driven by factors such as the Covid-19 pandemic, rising demand for healthcare services, and increasing investment from private equity firms. According to a report by BNP Paribas India, the Indian hospital segment has seen a significant increase in primary market transactions, with six hospitals concluding their initial public offerings (IPOs) in recent times.
The acquisition of Sahyadri Hospitals is expected to be a strategic move for the successful bidder, allowing it to expand its presence in the Indian healthcare market. The deal is also expected to be a significant transaction in the Indian hospital sector, which has seen consolidation in recent times, including the merger of Quality Care India with Aster DM to form India’s third-largest hospital chain. Overall, the bidding process for Sahyadri Hospitals is expected to be a closely watched event in the Indian healthcare industry.