U.S. private equity General Atlantic LLC is in talks to buy a 20 percent stake in Wockhardt Hospitals Ltd in a deal valued between $80 million and $100 million, the Financial Express business daily said on Tuesday.
Other private equity firms like Blackstone and Carlyle were also in the race for a stake in the hospital chain, but Wockhardt has started final talks with General Atlantic, the paper said citing an unnamed source.
Wockhardt Hospitals, which is promoted by the founders of drugmaker Wockhardt Ltd, has been seeking private equity investments since it axed its 25.1-million share initial public offer in February on poor investor response.
“There's lots of speculation going on about this, but there's nothing to it right now,” Wockhardt Hospitals Chief Executive Officer Vishal Bali told Reuters.
“We do not respond to any rumors,” a Wockhardt spokesman said.
Wockhardt Hospitals had planned to raise up to $154 million through the issue of shares, which would have constituted about 24.06 percent of the post-issue capital. The company was looking at similar valuations now, the paper said.
Source: Reuters