Private equity giant KKR has signed a definitive agreement to pick up a controlling stake in cancer care hospital chain Healthcare Global Enterprises (HCG) from CVC Asia V for $400 million (approximately Rs 3,465 crore).
As part of the transaction, KKR will acquire up to 54% of equity in HCG from CVC Asia V at Rs 445 per share. KKR will also make an open offer to purchase additional equity shares in HCG from public shareholders. Upon completion of the transaction, KKR is expected to hold an equity stake of between 54-77%. “KKR will become the largest shareholder in HCG and assume sole control of HCG’s operations. BS Ajaikumar, Founder of HCG, will take on the role of Non-Executive Chairman and be focused on driving clinical, academic and research and development excellence,” as per a company statement.
“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,” said Akshay Tanna, partner and head of India Private Equity, KKR.
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Founded in 1989, HCG is one of India’s leading oncology hospital chains. HCG operates 25 medical care centers across 19 cities with an infrastructure of 2,500 beds and close to 100 operating theaters and 40 linear accelerator machines.
“I am delighted to welcome KKR, with their investment and operational expertise in healthcare in India and globally, as a majority shareholder in HCG. In my new role as Non-Executive Chairman, I will focus on clinical aspects involving multidisciplinary approach to cancer care, and research and development,” said BS Ajaikumar, Founder, HCG.
The transaction is expected to close by the third quarter of 2025, subject to customary closing conditions and regulatory approvals.
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