AVCJ

Actis makes another attempt to sell India’s Sterling Hospitals – report

  • Mirzaan Jamwal
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Olympus Capital-backed DM healthcare and Temasek’s HealthCare Global (HCG) are reported to be making offers for Actis Capital's Sterling Hospitals.

According to The Times of India, Apax Partners and Advent International investee Care Hospitals could also be in the fray for the chain of seven specialty hospitals located in the state of Gujarat. Sterling operates a total of around 1,000 beds, across Ahmedabad, Vadodara, Rajkot, Bhavnagar and Kutch.

Actis owns an 80% stake in the company and is making a second attempt to sell its holding. In 2011, Khazanah Nasional's Parkway Holdings was the favored bidder. Actis was said to be expecting INR5.5 billion for its stake then.

Private equity interest in Indian healthcare sector - from hospital services to medical devices - is at an all-time high, with more than $1 billion invested in the sector in 2012, according to AVCJ Research. This compares to $333 million in 2011 and $478 million in 2010.

Industry estimates suggest that Sterling's valuations are pegged anywhere between INR7.5 million to INR10 million per bed, but the fact that the hospitals operate mostly outside of Tier-I cities could work against it.

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