Medicover shares jump over 9% after €1.2 billion sale of India hospital business to KKR

Shares of Swedish healthcare provider Medicover AB surged more than 9% on Thursday after the company agreed to sell its India hospital business to global investment firm KKR in a transaction valued at €1.2 billion, a move that marks a strategic pivot towards its core European markets while further expanding KKR's healthcare footprint in India.

The stock rose 9.19% to close at SEK 243.50 on the Stockholm Stock Exchange after touching an intraday high of SEK 244.50, as investors cheered the value-accretive transaction and the company's sharpened focus on Europe.

Medicover said it and its minority partners have entered into an agreement to divest 100% of Medicover Hospitals India (MHI) to funds managed by KKR. The deal values the business at an enterprise value of €1.2 billion and will generate gross cash proceeds of €740 million for Medicover. Subject to regulatory approvals and customary closing conditions, the transaction is expected to close in the fourth quarter of 2026.

Europe takes priority over India IPO

The sale represents a notable shift in Medicover's India strategy. In December 2024, the company had said it was evaluating an initial public offering of its India hospital business as the next phase of growth. Following that review, it concluded that a sale to KKR offered greater value for shareholders and its minority partners.

"We have a clear strategy for how we intend to grow and expand margins in our key markets," chief executive officer John Stubbington said.

"After careful consideration of alternatives for our India business, we have concluded that it is the right time to hand over the ownership to KKR... This is a highly value creating transaction that will enable accelerated delivery on our strategy with focus on Europe," he added.

Medicover said the proceeds would strengthen its balance sheet and provide greater flexibility to expand its healthcare and diagnostic operations in Poland, Germany and Romania.

KKR doubles down on Indian healthcare

The acquisition substantially expands KKR's healthcare portfolio in India, where the private equity firm has steadily built investments across hospitals, pharmaceuticals, medical devices and healthcare technology.

In 2025, KKR acquired a controlling stake in Healthcare Global Enterprises (HCG), one of India's largest cancer care networks, following its acquisition of a majority stake in Kerala-based Baby Memorial Hospital in 2024. During the same year, it re-acquired Healthium Medtech, a leading Indian medical devices company, while its earlier investments include a controlling stake in JB Chemicals & Pharmaceuticals in 2020. KKR was also an early investor in Max Healthcare, exiting its stake in 2022 after one of the largest private equity exits in India's healthcare sector. Its broader healthcare portfolio also includes Infinx, a healthcare revenue cycle management company, and Gland Pharma, stressing its long-term conviction in India's healthcare ecosystem.

One of India's top hospital platforms

Medicover entered India in 2017 and has since built one of the country's top ten hospital chains. As of June 30, 2026, Medicover Hospitals India operated 24 hospitals, around 4,800 beds and employed nearly 11,400 people, generating trailing twelve-month revenue of €220.5 million.

The company said the divestment would improve its financial profile. On an illustrative pro forma basis, Medicover said its EBITDA margin would improve to 16.5% from 16.1%, while operating margin would expand to 7.6% from 7.1% after excluding the India business.