Mumbai, May 31 -- Temasek-backed Cloudnine Hospitals is leading the race to acquire Art Fertility, a UAE-based IVF treatment chain, signalling a growing interest among financial and strategic investors for single-specialty healthcare companies.

The deal, valuing Art Fertility at $400 million, has also seen interest from IVI, a European strategic investor, four people with knowledge of the development said on the condition of anonymity.

"The binding bids have come in. There are two final bidders. Cloudnine is likely the frontrunner," the first person cited above said. The deal will give existing investor Gulf Capital an exit.

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"Temasek is expected ...