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ontario teacher’s pension plan: Canadian fund Ontario Teachers’ Pension Plan Board to acquire Sahyadri Hospitals

Canada’s leading investor Ontario Teachers’ Pension Plan Board (OTPP) will acquire a significant majority stake in Sahyadri Hospitals Group, the largest private hospital chain in the state of Maharashtra, said OTTP statement. The deal size is not disclosed. However, the deal has valued the hospital chain at Rs2500 crore, said people aware of the development.

Existing investor Everstone Group, along with key management and founders will retain minority stakes in the company. This will be OTPP’s first private equity buyout in India.

The sell-out process of Maharashtra’s largest hospital chain Sahyadri Hospitals entered into the last lap as Canada’s leading pension fund Ontario Teachers’ Pension Plan Board (OTPP) and

emerged as the frontrunners, ET first reported on May 25. The deal will value Sahyadri Hospital, owned by private equity fund Everstone Capital, at Rs2500-2700 crore, ET reported.

Sahyadri has 8 hospitals with 900 operating beds and 300 critical-care beds. In addition, the hospital chain has plans to grow capacity by over 500 beds during the next five years. With 2,000 clinicians along with 2,600 supporting staff across its network of hospitals, Sahyadri’s facilities are concentrated around the city of Pune, which is the second largest city in Maharashtra by population.

Everstone Capital had bought Sahyadri in 2019 from leading neurosurgeon Dr Charudutt Apte. Though the deal size was not disclosed, ET reported the deal size at Rs1000 crore.

“We are pleased to acquire a majority stake in Sahyadri Hospitals, which is our first control private equity buyout in India, and our fourth major investment in the country over the last 12 months. We believe we can leverage our significant global experience in the healthcare sector to help scale the company into a national healthcare provider in the coming years,” said Raju Ruparelia, Senior Managing Director, Private Capital, Asia-Pacific at Ontario Teachers’.

OTPP is the administrator of Canada’s largest single-profession pension plan, with $189 billion in net assets as on December 31, 2021.

“Sahyadri is the largest multi-specialty healthcare service provider in the West India corridor. Sahyadri’s unique hub and spoke model and best-in-class clinical capabilities have truly touched patients’ lives,” Puncham Mukim, Managing Director of Everstone.

Sahyadri is the latest investment by Ontario Teachers’ Private Capital team in high-performing healthcare businesses. Recent investments include Asia Pacific Healthcare Group, New Zealand’s largest pathology network, Abano Healthcare, the operator of one of the largest trans-Tasman dental groups, and Acorn Health, a leading U.S. provider of Applied Behavior Analysis therapy for children diagnosed with Autism Spectrum Disorder.

In the hospital segment, the expansion of private players to Tier 2 and Tier 3 locations, beyond metropolitan cities, offers an attractive investment opportunity. According to Invest India’s Investment Grid, there are nearly 600 investment opportunities worth $32 billion (Rs2.3 lakh crore) in the country’s hospital/medical infrastructure sub-sector.



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