AVCJ

Carlyle buys stake in India's Metropolis Healthcare

  • LinkedIn  
  • Google plus  
  • Save this article  

The Carlyle Group has agreed to buy a 37% stake in medical diagnostics chain Metropolis Healthcare, ending a dispute among the company's current ownership.

In a statement, the private equity firm said that Metropolis promoter G.S.K. Velu would sell his entire stake to an affiliate of Carlyle Asia Partners IV. The statement did not disclose financial details, but Indian media have reported that Carlyle will pay INR9 billion ($135 million).

Velu's co-promoter, the Sushil Shah family, currently holds a 63% stake, following its purchase of Warburg Pincus' 27% stake in the company this April. That became a sore point between the promoters, which each held an equal share until the transaction. Velu has accused the Shahs of failing to inform him about their plans to purchase the shares, while the family claims Warburg Pincus declared its intentions last year and all board members knew of the anticipated deal.

Metropolis, founded in 1981, performs more than 4,500 different laboratory tests, with facilities in India, the United Arab Emirates, Sri Lanka, South Africa, Kenya, Mauritius and Ghana. Its clients include hospitals, nursing homes and other healthcare providers.

Previous significant deals for Carlyle in the Indian healthcare market include its purchase of a minority stake in Global Health Private in 2013. Avenue Capital exited its 24% interest at that time.

  • LinkedIn  
  • Google plus  
  • Save this article  

More on South Asia

Latest News

world-hands-globe-climate-esg
Asian GPs slow implementation of ESG policies - survey

Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...

  • GPs