Apollo Hospitals founder interested in Apax stake

Reddy told Bloomberg that Apax has been talking about selling its holding. He added that he may purchase equity from the private equity firm or simply acquire shares via the secondary market. According to Indian securities regulations, founders can buy no more than 5% of their company's shares each year through secondary market deals.

Apax was reported to be in talks with potential buyers for its 10% stake in September of last year, with sources saying the deal could be worth $250 million or more. Khazanah Nasional, the Malaysian sovereign wealth fund that already owns 10.85% of Apollo through IHH Healthcare, was thought to be involved in the negotiations. The Blackstone Group and Bain Capital were also linked to the asset.

Apollo has 50 owned or managed hospitals with a total capacity of more than 8,200 beds. Apax acquired an 11.4% stake in the hospital chain in 2007, paying INR4.26 billion ($79 million). Based on Apollo's most recent trading price, the private equity firm's remaining stake is worth about $200 million.

Shares in Apollo are up 29% on a one-year basis compared to a 24% gain in the BSE Sensex Index.

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• Topics
• Healthcare
• Exits
• South Asia
• healthcare
• India
• Apax Partners Hong Kong
• Exit