Kolkata: In two successive merger and acquisitions (M&A) transactions, Manipal Health Enterprises is set to acquire Emami Group’s stake in AMRI Hospitals at a valuation of Rs 2,350 crore in the next few days.
Subsequently, Singapore-based private equity major Temasek will buy a controlling stake in Manipal Health Enterprises at a valuation of $4 billion (Rs 32,800 crore), banking sources said.
“Manipal will pay for Amri stake in two tranches. The first tranche of a higher sum will be paid upfront and the rest after about a year,” a source close to the deal said. Both deals will be signed before the fiscal year end.
After signing of the agreement, Manipal Health will withdraw all pending court cases against Emami. Manipal had moved courts against Emami for going back on a sale plan agreed last year.
Fresh talks between Manipal Health and Emami started after an earlier deal at a lower valuation of about Rs 1,800 crore for AMRI fell through due to terms and conditions of the deal and clearances from the West Bengal government. The state government has a 1.9 per cent stake in AMRI.
In November 2022, Manipal Health moved Delhi High Court to prevent the Emami Group from selling a majority stake in AMRI Hospitals to a third party or altering the management. Reports suggested that Max Healthcare entered the fray for AMRI with a Rs 2,700-crore bid. Max had earlier declined comment on this.
However, early February, both Manipal Health and Emami apprised the Delhi High Court that talks of settlement were still ongoing.
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