HealthCare Global shares jump 3% as KKR buys majority stake for $400 mn

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KKR will become the largest shareholder in HCG and assume sole control of its operations.

KKR has proposed to buy up to 54% shares in HealthCare Global from CVC Capital Partners for $400 million
KKR has proposed to buy up to 54% shares in HealthCare Global from CVC Capital Partners for $400 million | Credits: Getty Images

Global investment firm KKR has signed a deal with Healthcare Global Enterprises (HCG) to acquire controlling stake in Indian cancer care specialist from private equity firm CVC. The U.S. investment company has proposed to buy up to 54% shares in HealthCare Global from CVC Capital Partners for $400 million. This is the third major acquisition by KKR in Indian healthcare space recently, after investing in Baby Memorial Hospital in Kerala and Bengaluru-based medical devices company Healthium Medtech.

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Boosted by the development, Healthcare Global shares rose 3.5% to ₹517.85 in early trade today, while the market capitalisation climbed to ₹7,175 crore. The healthcare stock opened higher at ₹502.15 against Friday’s closing price of ₹500 apiece.

As per the deal, KKR will become the largest shareholder in HCG and assume sole control of its 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,” the release noted.

KKR proposes to buy up to 77% stake via open offer  

KKR will acquire equity stake in HCG from CVC Asia V at a purchase price of ₹445 per share. Adding to it, KKR will launch an open offer to purchase additional equity shares in HCG from public shareholders. Upon completion of the transaction, it is expected to hold an equity stake of between 54-77%. The transaction is expected to close by the third quarter of 2025, subject to closing conditions and regulatory approvals.

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“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. We look forward to leveraging KKR’s global healthcare expertise to strengthen HCG’s offerings and working with BS Ajaikumar to further enhance HCG’s clinical excellence,” said Akshay Tanna, Partner and Head of India Private Equity, KKR.

Founded in 1989, HCG is one of India’s largest oncology hospital chains, operating 25 medical care centers across 19 cities. It operates 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator machines (LINACs).

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“I am delighted to welcome KKR, with their investment and operational expertise in healthcare in India and globally, as a majority shareholder in HCG. Patient well-being and outcomes will always be a top priority for us at HCG, and in my new role as Non-Executive Chairman, I will focus on clinical aspects involving multi-disciplinary approach to cancer care, and research and development; and look forward to the journey of HCG where it continues to stay at the forefront of clinical excellence, research, and academics,” said Dr. BS Ajaikumar, Founder, HCG.

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This transaction marks KKR’s latest investment in India’s healthcare space. Past investments in this sector have included Baby Memorial Hospital, a leading regional multi-specialty hospital chains in India; Healthium, a leading Indian medical devices company; and Infinx, a techenabled healthcare revenue solutions provider, Adding to it, they also invested in Max Healthcare, one of India’s largest hospital networks; JB, a leading branded formulations pharmaceutical company in India and Gland Pharma, a leading Indian pure-play generic injectable pharmaceutical products company.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)

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