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KKR will acquire up to 54% stake in Healthcare Global from CVC Asia V, at a purchase price of ₹445 per share, according to the filing. The purchase price is at a discount of nearly 11% to Healthcare Global’s closing price last Friday.
The total consideration for this stake is $400 million or nearly ₹3,465 crore. Healthcare Global founder, Dr. BS Ajaikumar, will become Non-Executive Chairman and drive clinical, academic and research and development.
The acquisition also triggers a mandatory open offer, under which KKR will purchase additional equity shares from public shareholders of Healthcare Global. At the end of the December quarter, Public shareholding in Healthcare Global stood at 28.77%.
KKR’s stake in Healthcare Global is expected to be between 54% to 77%, the healthcare provider said in a statement. The PE firm will be making its investment from its Asia Fund IV and add to its portfolio within the healthcare space in the country, which includes Baby Memorial Hospital, Healthium, Infinx, Max Healthcare, JB and Gland Pharma.
Healthcare Global is one of India’s largest oncology hospital chains with 25 medical care centers across 19 cities, including 2,500 beds, 100 operating theaters and 40 linear accelerator machines.
This also confirms a CNBC-TV18 newsbreak of October 31, 2023, when it first reported citing sources that CVC has put Healthcare Global on the block with PE heavyweights like KKR and BPEA EQT being among the lead contenders for the same.
According to the newsbreak back then, CVC was seeking over ₹4,000 crore for its 60.42% stake.
“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,” Healthcare Global founder Dr. BS Ajaikumar was quoted as saying.
Shares of Healthcare Global ended 1.5% lower on Friday at ₹500 and are 12% away from their 52-week high of ₹567.7. The stock has risen 30% over the last 12 months.
