Sydney-based trans-Tasman private equity firm Mercury Capital has moved to almost full ownership of New Zealand’s largest healthcare group Tāmaki Health.
New Zealand’s Overseas Investment Office (OIO) has reported that on 4 March it approved the sale of about 50% of the business to Mercury Medical Holdings Ltd. OIO valued “significant business assets only” at $NZ77 million.
The OIO said the applicant had “satisfied the OIO that the individuals who will control the investment are suitable persons to invest in New Zealand”.
Reports last year that the entire business was up for sale resulted in speculation of an asking price of $NZ400 million-plus.
In 2017, Mercury invested in a 49.44% stake in Tāmaki Health which it bought from founders Dr Kantilal Patel and wife Ranjna’s Nirvana Family Partnership LP. The name of the business was changed from Nirvana Health Group in 2019.
Mercury now holds 98.88% of the company with the remainder held by eight shareholders including Tāmaki Health chief executive Steffan Crausaz and other members of the management team. The OIO said the business was now 72% New Zealand owned with 24% ownership from the US and 4% from Australia.
Tāmaki Health employs about 1,000 people, operates 45 healthcare centres and has around 230,000 patients on its books. The company is the largest provider of urgent care and general practice clinics in New Zealand.
Late last year, Green Cross Health (NZX: GXH) confirmed it was working with Australian private equity firm Pacific Equity Partners on an acquisition bid for Tāmaki Health. It was also reported that another Australian private equity firm, Crescent Capital Partners, had shown interest in being involved in an offer for Tāmaki Health.