Singapore government owned fund Temasek Holdings has acquired a majority stake in India’s second biggest hospital chain Manipal Health Enterprises for over $2 billion by buying out a 59% stake in the company.

Temasek-owned Sheares Health, which held an 18% stake in Manipal, has acquired an additional 41% stake from the promoters Dr Ranjan Pai & family as well as other existing investors. The Singapore fund now owns a 51% stake in Bengaluru-headquartered Manipal Healthcare.

The deal has valued the hospital chain at Rs 40,000 crore ($5 bn) of enterprise value.

Manipal owns 29 hospitals across 16 cities in the country and is second only to Apollo Hospitals in size.

After the deal is completed the stake of Dr Ranjan Pai and his family will fall to 30% from 52% at present. The transaction is now  awaiting the clearance of the Competition Commission of India.

Billionaire Ranjan Pai has expanded the education and healthcare business founded by his grandfather in 1953 in a big way. The famous Manipal University in Mangaluru is the flagship of the group.