DK Business Network
In a significant move within India’s healthcare sector, global investment giant KKR has signed a definitive agreement to acquire a controlling stake in Healthcare Global Enterprises (HCG), a premier oncology-focused healthcare provider in the country. The deal, valued at approximately USD 400 million, is set to position KKR as HCG’s largest shareholder, granting the firm full operational control over the company.
As per the Agreement, KKR will purchase up to 54% equity in HCG from CVC Asia V at a price of Rs 445 per share. In compliance with SEBI’s Takeover Regulations, the firm will also initiate an open offer to acquire additional shares from public shareholders. Depending on shareholder response, this could result in KKR’s stake rising between 54-77% upon the deal’s completion.
Following the acquisition, Dr. BS Ajaikumar, the founder of HCG, will transition into the role of Non-Executive Chairman, where he will focus on fostering clinical innovation, research, and development to strengthen HCG’s reputation as a leader in cancer care.
Commenting on the transaction, Akshay Tanna, Partner and Head of India Private Equity at KKR, highlighted the firm’s long-term vision for India’s healthcare ecosystem. “HCG has been a trailblazer in oncology care for over 30 years. With healthcare being a core area of focus for KKR, this investment will enhance medical infrastructure and improve access to high-quality cancer treatment,” he stated.
Dr. Ajaikumar acknowledged CVC’s contributions in scaling HCG and expressed confidence in KKR’s ability to drive further growth. “KKR’s deep expertise in global healthcare investments and strategic management will significantly strengthen our clinical capabilities and expand our patient care services,” he remarked.
KKR has a history of investing in India’s healthcare sector, with past investments in Max Healthcare, Baby Memorial Hospital, Healthium, Infinx, JB Pharmaceuticals, and Gland Pharma. The acquisition is expected to conclude by Q3 2025, subject to necessary regulatory approvals and customary closing conditions.
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