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Actis to sell Sterling Hospitals stake back to promoter

  • Mirzaan Jamwal
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Actis will exit a 2006 investment in India’s Sterling Hospitals chain by selling its 82% shareholding back to the founder, Girish Patel. Financial terms of the deal were not disclosed.

The GP paid $15.5 million for a 41% stake in 2006 and increased its holding over time.

In October Actis was reported to be in talks with Temasek Holdings-backed HealthCare Global over a potential trade sale. The Bangalore-based cancer care specialist is said to have bid about INR5 billion ($81.6 million) for Sterling.

Actis had previously tried to exit in 2011, when Khazanah Nasional's Parkway Holdings was the favored bidder. The PE firm was said to be expecting INR7 billion for its stake then. Sterling's turnover was estimated to be around INR2.5 billion in 2011.

Over the period of Actis' investment, the company has grown from 375 beds across two hospitals in the state of Gujarat to eight centers with more than 1,000 beds and expanded its specialist surgery capability to include liver and bone marrow transplants.

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