Friday, October 09, 2015
India's largest pathology chain SRL Diagnostics, majority owned by Fortis Healthcare, has started a large stake sale process attracting interest from sovereign wealth funds and bulgebracket private equity firms. SRL has roped in investment bank Moelis & Co to advise on at least $200-million (around Rs 1,250 crore) share sale, primarily to help some existing investors monetize its minority holdings, sources familiar with the matter said.
A clutch of investors, International Finance Corporation (IFC), NYLM Jacob Ballas and Avigo Capital, hold around 34% stake in the diagnostics company valuing it at about $700 million (over Rs 4,400 crore). While the stake sale mandate is only for the shares held by minority investors, sources said the company could explore all strategic options. The move to facilitate a deal for minority investors suggests that SRL has scrapped its IPO plans in the near future.
"We would like to categorically state that the mandate is for the sole purpose of providing an exit to the investors in SRL," a Fortis spokesperson said in response to an emailed query from TOI. Four years ago, billionaire brothers Malvinder and Shivinder Singh transferred their majority holdings in SRL to the listed flagship Fortis Healthcare, which is the country's second largest multi-specialty hospital network.
Global private equity houses like Bain Capital, Baring Asia, TPG Capital and sovereign wealth funds of Abu Dhabi are being approached for the stake sale, sources said, adding that the process was still in the initial phase.
Embassy, Warburg in $250m warehousing JV
Bengaluru: Real estate developer Embassy Group said it has formed a $250-million (Rs 1,625 crore) JV with private equity firm Warburg Pincus to build warehouses across the country, treading a largely unchartered path for organized players.
economictimes.indiatimes.com
