Laing Buisson reported:
The Carlyle Group has sold a 13% stake, more or less its entire stake, in Mumbai-based diagnostics company Metropolis Healthcare to raise Rs7.6bn (US$100m). It sold 6.6m shares the range of Rs1,150-Rs1,160 per share. The floor was set at Rs1,110. Although the company’s shares have a one-year return of almost 29%, they have slipped 36% from a peak of Rs1,992 at the start of March to Rs1,272.Carlyle was in a position to solve India's COVID-19 testing problem. Also, there is a need for strong clinical research into the deadly coronavirus. So why did Carlyle sell its remaining shares? In early April Reuters reported:
Metropolis has a presence across 18 states in India with 106 laboratories. It offers 3,480 clinical laboratory tests and profiles which are used for prediction, early detection, diagnostic screening, confirmation and/or monitoring of diseases. It also offers analytical and support services to clinical research organisations for their clinical research projects.
India is restricting the export of most diagnostic testing kitsBBC News reported India's Supreme Court ordered all COVID-19 testing be done for free.
According to the new order, issued on 13 April, the government will reimburse private labs for testing the 500 million people covered by a flagship public health insurance scheme. The rest would have to pay.Carlyle expects governments to ensure their grand returns. Plus the $100 million helps in a credit crunch.
The Carlyle Group is searching for a new managing director for its India investments. It needs to replace the gentleman hired in 2018 for that position. Carlyle India experienced two exits, one affiliate and one employee. Are the two related?
Update 7-11-20: Carlyle sold the rest of Metropolis for roughly $11 million.
