Tanna says HCG is pioneer in cancer care in India
KKR, a leading global investment firm, is to become the largest shareholder in Bengaluru-headquartered Healthcare Global Enterprises (BSE: 539787; NSE: HCG; HCG), a leading healthcare organization in India.
KKR and HCG have signed definitive agreements with CVC, a leading global private markets manager, under which funds managed by KKR will assume sole control of HCG’s operations.
Dr B S 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 part of the transaction, KKR will acquire up to 54% of equity in HCG from CVC Asia V at a purchase price of Rs.445 per share. Pursuant to the Securities and Exchange Board of India’s Takeover Regulations, an open offer will be conducted by KKR 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%.
Founded in 1989, HCG is one of India’s largest oncology hospital chains. HCG operates 25 medical care centres across 19 cities with best-in-class infrastructure including 2,500 beds, nearly 100 operating theaters and 40 linear accelerator machines (LINACs).
Akshay Tanna, Partner and Head of India Private Equity, KKR, said on 23 Feb, “HCG is a pioneer in cancer care in India and has established itself as an important healthcare provider in the country for the past three decades https://www.nseindia.com/.
“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 https://www.bseindia.com/.”
Siddharth Patel, Managing Partner, CVC, said, “We are proud to have supported HCG’s transformation at a critical juncture in time to build it into one of India’s leading healthcare organizations and the delivery of high-quality care to many patients over the years.”
KKR makes its investment from its Asia Fund IV. This transaction marks KKR’s latest investment in India’s healthcare space. Fiinews.com
