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TPG-backed Manipal eyes back-door listing via Fortis; Three suitors for FINO stake

26 March, 2018

A consortium of private equity firm TPG and Manipal Health Enterprises Pvt. Ltd is looking to acquire hospital chain Fortis Healthcare Ltd through a two-step transaction, The Economic Times reported.

Citing people aware of the development, the report said Fortis will first demerge its healthcare unit into a separate listed entity which will eventually be merged with Manipal Health. Manipal will get listed on the stock exchange as a result.

In the second step, the Manipal-TPG consortium is likely to acquire a 51% stake in diagnostic chain SRL Ltd from the existing private equity investors and Fortis. The report added that SRL’s minority shareholders are yet to approve the proposed transaction.

As on 31 March 2017, Fortis held a 62.5% stake in SRL. The other investors in SRL include International Finance Corporation, and private equity firms Jacob Ballas and Siguler Guff & Company.

Private-sector lender Yes Bank holds a 15.14% stake in Fortis Healthcare as it acquired the pledged shares after promoter group companies defaulted.

Fortis is going through tough times and is being probed by the Serious Fraud Investigation Office under the Ministry of Corporate Affairs.

The report said IHH Healthcare Berhad, which is majority owned by Malaysian sovereign wealth fund Khazanah Nasional Berhad, is planning a voluntary open offer to buy a majority stake in Fortis through the open market.

FINO PayTech’s suitors
Japanese telecom and Internet conglomerate SoftBank Group, Singapore state investor Temasek Holdings and Morgan Stanley Private Equity Asia are in separate talks to pick a 33.33% stake in financial services company FINO PayTech Ltd at an enterprise valuation of Rs 2,000 crore, The Economic Times reported.

The proposed deal will involve a mix of primary and secondary transaction. Private equity giant Blackstone will sell its 26% stake in the company and the acquirer will pick up a 7% stake in the company through primary infusion, the report added.

In 2011, Blackstone had invested Rs 150 crore for a 26.5% stake in the company.

Credit Suisse is advising FINO PayTech on the deal, according to the report.

Founded in 2006, FINO is a financial inclusion software solutions and services company. It runs FINO Payments Bank.

Rcom-Sistema
Russian industrial conglomerate Sistema has emerged as the highest bidder for the remaining assets of Anil Ambani-led Reliance Communications Ltd at a total value of $1.5 billion, The Economic Times reported, citing three people aware of the development.

The assets that are part of the deal include Indian and global business-to-business enterprise operations, Internet data centres and a submarine cable network.

In December 2017, Reliance Communications had agreed to sell its wireless infrastructure assets to Reliance Jio. The deal involved RCom selling its telecom towers, spectrum, optic fibre network and media convergence nodes.

Dhoot Transmissions
Aurangabad-based wiring harness maker Dhoot Transmissions Pvt. Ltd is set to acquire UK-based Parkinson Harness Technology for about Rs 150-200 crore, The Economic Times reported, citing people aware of the development.

Parkinson Harness makes bespoke electrical solutions including wiring harnesses, control panels, battery and power leads and control systems, according to its website.

Rahul Dhoot, managing director of Dhoot Transmission, told the financial daily that acquisition will help the company acquire key clients in Europe and diversify its domestic businesses within the four-wheeler category in the agricultural and construction sectors.

In 2017, Dhoot Transmission had agreed to acquire Scotland-based TFC Cable Assemblies Ltd for Rs 100 crore.

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TPG-backed Manipal eyes back-door listing via Fortis; Three suitors for FINO stake

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