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Singapore government-owned fund Temasek Holdings is said to have acquired an additional 41% stake in Manipal Health Enterprises for about Rs 16,500 crore to have majority control in the Bengaluru-based firm.

Temasek Holdings-backed Sheares Health, which already holds 18% in Manipal, is acquiring the stake valuing the healthcare chain at around Rs 40,000 crore, making it the largest deal in the Indian healthcare sector, people aware of the development said.

An official announcement is expected next week.

When contacted, Manipal Health Enterprises declined to comment. Temasek Holdings said, “As a matter of policy, Temasek does not comment on market speculation.”

The transaction tops the list of multi-crore deals in the Indian healthcare sector, including the Rs 9,100 crore stake sale of 27% stake by KKR in Max Healthcare last year and Malaysia-based IHH Healthcare’s 31.17% buy in Fortis for Rs 4,000 crore in November 2018.

The deal is being carried out through the acquisition of shares from the current promoters of Manipal Health—the Pai family and other shareholders, including TPG Capital.

The Pai family currently holds 52% of the company, and, after the transaction, their holding will come down to 30%.

TPG Capital’s holding is also expected to come down to 11% from 22%, sources said.

On the other hand, National Infrastructure Investment Fund, which has around 8% stake in Manipal, will completely exit.

Started in 1953, Manipal Health is a multi-speciality healthcare provider with 29 hospitals and around 8,300 beds, across 16 cities.