Strategic investors were reportedly in talks to acquire a majority stake in Vasan Healthcare Pvt. Ltd. Sources told Wall Street Journal affiliate Mint that these include a large local hospital chain, a global eye care brand and a couple of domestic corporations.
Vasan Healthcare operates eye care hospitals in India. It has more than 150 eye care centers, and was expected to increase its facilities to 200 by the next fiscal year. It also has 30 dental centers.
Although the talks were still at a preliminary stage, Vasan Healthcare has been valued at around INR 4,000 crore. Valuation may rise further, Mint sources said.
According to Mint, it will be one of the largest mergers and acquisitions transactions in the niche healthcare segment should the deal push through. Meanwhile, Vasan Healthcare chairman A.M. Arun will retain his minority holding in the company.
Vasan Healthcare had attracted a significant amount of private equity investments in the past. It had received USD100 million from sovereign wealth fund Government of Singapore Investment Corporation (GIC). The GIC investment is one of the largest private equity deals in the Indian Healthcare industry, the report said.
Prior to the GIC investment, Vasan Healthcare also raised USD million from investment firms Sequoia Capital and WestBridge Capital in three funding rounds, Mint said.
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