India Business Journal - KKR set to purchase 54% stake in HCG for Rs 3,465 crore from CVC Asia V

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KKR set to purchase 54% stake in HCG for Rs 3,465 crore from CVC Asia V

IBJ Bureau
Feb 24, 2025

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 a part of the transaction, KKR will acquire up to 54 per cent 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 and 77 per cent.

“KKR will become the largest shareholder in HCG and assume sole control of HCG’s operations. B S Ajaikumar, the founder of HCG, will take on the role of non-executive chairman and be focused on driving clinical, academic and research and development excellence,” according to 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.

Founded in 1989, HCG is one of India’s leading oncology hospital chains. HCG operates 25 medical care centres across 19 cities with 2,500 beds, close to 100 operating theatres and 40 linear accelerator machines.