Temasek Holdings is in talks with a number of sovereign funds, together with Abu Dhabi’s Mubadala Investment Co. and Brunei Investment Agency, to pare its stake in Manipal Health Enterprises Ltd to de-risk its holdings, two folks conscious of the event stated.

Singapore state investor Temasek at present holds round 59% stake in Manipal Health. It is, nonetheless, eager to retain a majority—or greater than 51% stake—within the firm, the 2 folks cited above stated, requesting anonymity.

Additional traders may be part of a particular goal car, structured as a ‘back-end’ funding association for Temasek, one of many two folks stated. The association may resemble a co-investment deal the place Temasek represents different traders on the capital desk, with the potential for bringing in extra traders, based on the particular person.

“Temasek is anxious about their excessive publicity, which they need to scale back,” the particular person added.

Reuters first reported Mubadala’s talks with Temasek Holdings for a stake in Manipal Hospitals on Wednesday.

The deal is being negotiated at a valuation of round $5 billion.

In April, Sheares Healthcare, a unit of Temasek, agreed to purchase a controlling stake in Manipal Health Enterprises, elevating its possession from 18% to shut to 59% for about ₹16,400 crore in one of many largest hospital offers in India.

At the time, investor TPG offered half of its stake whereas India’s National Investment and Infrastructure Fund offered its total 8% stake, valuing Manipal at round ₹40,000 crore ($4.88 billion). Manipal Education and Medical Group Pvt. Ltd retains round 31% of the corporate, with TPG holding round 10-11%.

A spokesperson for Temasek declined to remark, whereas Manipal Hospitals, Mubadala and Brunei Investment Agency didn’t reply to requests for feedback.

Since the transaction was struck in April, Manipal has acquired one other asset, which is anticipated so as to add ₹1,000 crore to its income in FY24. Last week, Manipal Health introduced it had acquired an 84% stake in Emami Group’s Amri Hospitals for round ₹2,300 crore in a deal that might additionally see the hospital chain taking over Amri’s debt on its books. Manipal reported whole income of round ₹4,500 crore for FY23.

Mubadala is a sovereign investor that manages cash on behalf of the federal government of Abu Dhabi, whereas Brunei Investment Agency is the sovereign wealth fund of the federal government of Brunei.