Page 39 - IACC Newsletter August-September 2013 Issue 13

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Washington, DC based Carlyle in talks to buy 28% stake in Trehan's hospital
Global private equity (PE) major Carlyle is in talks with renowned cardiac surgeon Dr Naresh Trehan to acquire a minority
stake in his Gurgaon-based multi-super speciality hospital, Medanta -The Medicity. According to people in the know,
Carlyle is keen to acquire 28 per cent stake of Avenue Capital, along with another 10-15 per cent stake owned by
Trehan.
Trehan holds 55 per cent stake in Global Hospitals, which owns Medanta, while construction Major Punj Lloyd owns
another 17 per cent in the holding company.
According to sources, Trehan pegs the hospital’s overall valuation at 3,000-3,200 crore ($500 million) — four times its
annual revenue at Rs 800 crore. However, the buyers are demanding a lesser valuation saying that the hospital doesn’t
have presence in other north Indian states, sources said.
Emails sent to Trehan and Carlyle spokesperson did not elicit any response.
Medanta includes a research centre, medical and nursing school. It has 1,250 beds and over 350 critical-care beds with
45 operation theatres catering to more than 20 specialties.
Since Neeraj Bharadwaj joined as managing director of Carlyle Asia Buyout fund in India last year, the PE firm has been
continuously exploring larger deals in Indian healthcare. Carlyle was also engaged in discussion to acquire the domestic
formulations business of Mumbai-based Elder Pharma. Bharadwaj, former India head of Apax Partners, had clinched the
$170-million investment in Apollo Hospitals. Apax offloaded its entire 19 per cent stake in Apollo recently for Rs 2,240
crore, a three-time gain on its investment.
In India, Carlyle has only one investment in healthcare space, Claris Life sciences, which was made in 2006.
As one among the sectors which is insulated from regulatory issues, healthcare remains attracted to PE investors. Last
week, Hyderabad-based Rainbow Hospitals received Rs 100-crore investment from UK-based CDC and Abraaj Group.
Early this month, ASK Pravi had invested Rs 60 crore in Hyderabad's OMNI Hospitals.
Other hospitals which are looking for fundraising include Sri Kavery Medical Care (Trichy) Pvt Ltd, which is backed by
Ajay Piramal-owned India Venture Advisors. Bangalore-based Cloudnine Hospitals is also looking for a funding of Rs 100
crore and engaged in discussion with funds such as Sequoia.
According to a CARE Research report, India has a demand of another 1.75 million beds by the end of 2025. Currently, the
country has one hospital bed for 1,000 people, against the global average of four.
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New York based Thomson Reuters acquires Omnesys
Thomson Reuters recently said that it has acquired Bangalore-based Omnesys Technologies for an undisclosed amount.
Omnesys is an integrated provider of sell-side order management systems (OMS) and high frequency trading solutions
for Indian exchange traded instruments.
The acquisition further extends and complements Thomson Reuters’ financial market data desktop and feeds offering to
the financial industry in India, it said in a statement. By combining Omnesys’ capabilities with Thomson Reuters content,
analytics, quant and event-driven trading infrastructure, the company can now offer Indian customers a portfolio of
integrated solutions for exchange traded instruments that are tailored to their market, it added.