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TPG may sell stake in Asia Healthcare; TCG Asset Management to launch $300 mn fund

20 November, 2017

Asia Healthcare Holdings, the healthcare platform of TPG Growth, is looking to raise up to $100 million by selling a significant minority stake, Mint reported, citing two people aware of the development.

TPG Growth is the middle-market and growth-equity investment platform of global alternative asset firm TPG Capital.

Several sovereign and global private equity funds have shown interest in buying the stake, one of the two persons mentioned above told the financial daily.

“Overall, Asia Healthcare Holdings is looking to raise anywhere between $80-100 million which will be used towards operating expenses as well adding new facilities,” the person added.

TPG Growth has given the mandate to Kotak Investment Banking to find a buyer.

Asia Healthcare holds TPG Growth’s investments in Rhea Healthcare Pvt. Ltd, which runs a hospital chain under the Motherhood brand, and cancer treatment provider Cancer Treatment Services International.

In April 2016, it picked up a 65% stake in Cancer Treatment Services for another $33 million. In July 2016, TPG Growth had invested $33 million in Rhea Healthcare for a significant majority stake.

TCG Asset Management to launch new fund
TCG Asset Management is looking to launch an alternate investment fund, christened Primario Fund, with a target corpus of Rs 2,000 crore ($307 million), a report in Mint stated.

TCG Asset Management is the asset management arm of The Chatterjee Group.

“We are launching a Category III AIF, which will infuse primary capital in listed as well as unlisted companies in the form of preferential allotments, qualified institutional placements, initial public offerings, pre-IPOs and institutional placement programmes,” Chakri Lokapriya, managing director of TCG Asset Management told the financial daily.

The Primario Fund is sector-agnostic and will invest in approximately 30 companies, according to the report.

TCG Asset Management Company manages offshore dollar-denominated funds and domestic rupee-denominated funds. It is investing in India since 2004, according to its website.

Vadilal promoters to exit firm
The promoters of the country’s oldest ice cream brand Vadilal are looking to sell their stake in the company, a report in The Economic Times states, citing two people in the know.

Vadilal has given the mandate to investment banker Lincoln International to find a buyer, the report added a person aware of the development.

“The promoters would take a call on the valuations and exact stake they would want to sell, depending on the buyer,” the report quoted the individual mentioned above as saying.
As on September 2017, the promoter group held 64.84% stake in Vadilal Industries Ltd.

In August 2017, VCCircle reported that the warring promoters of Vadilal decided to settle their family feud out of court. The promoters have been battling for control of the company with each side accusing the other of mismanagement and financial impropriety.

The Gujarat-based Gandhi family owns Vadilal Enterprises Ltd that makes ice creams and several other group firms.

Lenders of Seven Hills file for insolvency
The lenders of hospital chain Seven Hills Healthcare Pvt. Ltd have filed for insolvency of the firm. This would force the hospital chain to initiate an auction, a report in The Economic Times stated, citing two people aware of the development.

The entire debt of the hospital chain is pegged at around Rs 1,100-1,200 crore ($190 million), according to the report

“An NCLT process will clean the asset, the bids will also be more competitive than what’s on the table now. There is still substantial upside left in the asset. Moreover, the promoter having been inflexible to most revival plans and JP Morgan failing to take over the asset, this is the best platform available for the lenders to salvage the asset,” the report quoted a person in the know who did not wish to be identified as saying.

Seven Hills Healthcare has a hospital each in Mumbai and Visakhapatnam.

As of 31 March 2016, JP Morgan Asian Infrastructure and Related Resources Opportunity (AIRRO) held 49.9% stake in the company and the rest is held by promoters.

AIRRO initially invested $64.6 million in September 2008 for a 37.2% stake in Seven Hills, valuing the company at $170 million, according to data from VCCEdge, the data research platform of News Corp VCCircle. This was followed by a $35.78 million investment in March 2013 and $12.60 million investment in June 2014.

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TPG may sell stake in Asia Healthcare; TCG Asset Management to launch $300 mn fund

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