KKR to Take Majority Control Stake of Healthcare Global Enterprises

KKR has signed definitive agreements to acquire a controlling stake in Healthcare Global Enterprises (HCG) from CVC Asia V. The acquisition will be carried out at ₹445 per share, with KKR purchasing up to 54% of HCG’s equity from CVC. An open offer will be conducted to acquire an additional 26% stake from public shareholders, in accordance with SEBI regulations. If fully subscribed, KKR’s total holding could range between 54% and 77%.

Open Offer Terms

As part of the open offer, KKR and its entities plan to acquire 3,70,90,327 equity shares, representing 26% of HCG’s expanded voting share capital. The offer price has been set at ₹504.41 per share, with a total potential consideration of ₹1,870.87 crore. 

Kotak Mahindra Capital Company Limited is managing the offer.

Change in Management 

Following the acquisition, KKR will assume sole control of HCG. Dr BS Ajaikumar, HCG’s founder, will transition to the role of Non-Executive Chairman and focus on clinical and research aspects. The board will undergo changes, with KKR’s nominees taking seats after the first phase of the transaction closes.

Overview

As per the reports, Healthcare Global Enterprises operates 25 medical care centres across 19 cities in India, specializing in oncology. It has 2,500 beds, 100 operating theatres, and 40 linear accelerator (LINAC) machines. HCG has been active in cancer treatment services in India since its founding in 1989.

Healthcare Global Enterprises share price is trading at ₹514.30, up ₹14.55 (2.91%) as of February 24, 12:05 PM. Over the past month, the stock has risen by 2.36%, and it has gained 34.14% in the past year.

Investments

KKR has made multiple investments in India’s healthcare sector. Its portfolio includes Baby Memorial Hospital, Healthium, Infinx, Max Healthcare, JB Pharmaceuticals, and Gland Pharma. The HCG acquisition, as per the filing, aligns with its focus on expanding healthcare infrastructure in India. The acquisition is expected to close by Q3 2025, subject to regulatory approvals.

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