MUMBAI: Private equity (PE) major Actis Capital is considering a sale of Ahmedabad-based Sterling Hospitals back to its founder Girish Patel and his family — also the erstwhile promoters of Paras Pharma — after a top bidder for the hospital chain lowered its acquisition price, multiple sources privy to the matter said.
Azim Premji and Temasek-backed HealthCare Global (HCG) had bid over Rs 450 crore after Sterling's controlling shareholder Actis mandated Kotak Investment Banking to sell the company. Ten days back, the Bangalore-based cancer care specialist dropped its offer price to Rs 325 crore, citing profitability concerns post a due diligence process, sources cited earlier told TOI.
Actis, an emerging markets-focused PE firm, owns an 80% stake in Sterling Hospitals leaving the rest with the Patel family, which had ceded majority control to the former in 2006. Now, Actis is mulling a sale back after its two successive attempts to find a buyer for Sterling Hospitals have gone awry.
When contacted by TOI, Girish Patel declined to comment on all queries regarding Sterling Hospitals, while Actis's South Asia head J M Trivedi said he did not want to respond to queries pertaining to investment and exit strategies.
Sterling Hospitals operates about 1,000 beds across Ahmedabad, Vadodara, Rajkot, Bhavnagar and Mundra
SEZ in the prosperous western state of Gujarat. It had reported Rs 275 crore in revenues and Rs 25 crore of operating profit last fiscal. Sources said HCG lowered the valuation post due diligence citing Sterling's inability to meet projected operating profit and large investments it required to spruce up infrastructure in hospitals.
"Actis and HCG haven't snapped discussions, but clearly the former is exploring other options including selling it back to the founders," a source who did not want to be named said. HCG declined to comment on the development.
Source : timesofindia.indiatimes.com