Private equity firm KKR has signed definitive agreements to acquire a controlling stake in oncology hospital chain operator Healthcare Global Enterprises for $400 million, a joint release said.
In the first leg of the transaction, KKR will buy up to 54 per cent stake in Healthcare Global from CVC Asia V at ₹445 per share. Then, it will make an open offer to buy additional shares from the public shareholders and expects to hold 54-77 per cent at the end of the transaction, it said. The acquisition is expected to be completed by the third quarter of 2025.
Shares of HCG closed at ₹500 on the BSE on Friday. It hit a 52-week high of ₹563.15 on February 3.
New role
Founder of HCG, BS Ajaikumar, will take on the role of non-executive chairman and will be focused on driving clinical, academic and research and development excellence.
In the statement, he said that CVC had put the hospital operator in a strong position. Welcoming KKR as a majority shareholder, he said that in his new role he would focus on clinical aspects involving multi-disciplinary approach to cancer care, and research and development.
HCG operates 25 medical care centers across 19 cities with 2,500 beds, nearly 100 operating theaters and 40 linear accelerator machines.
“As healthcare continues to be a thematic focus for KKR in India, our investment in HCG will support the development of medical infrastructure and the delivery of critical oncology services and care to more patients in the country,” Akshay Tanna, Partner, and Head of India Private Equity, KKR said in the statement.
KKR will be making its investment from its Asia Fund IV. The PE firm has been adding to its investments in the healthcare sector and past investments include Baby Memorial Hospital, a leading regional multi-specialty hospital chains in India, Healthium, a medical devices company, Infinx, a tech-enabled healthcare revenue solutions provider, Max Healthcare, one of India’s largest hospital networks, JB Chemicals and Pharmaceuticals , a branded formulations pharmaceutical company and Gland Pharma, a pure-play generic injectable pharmaceutical products company.
