Key Highlights:
- Strategic Acquisition: KKR to acquire up to 54% equity in Healthcare Global Enterprises (HCG) from CVC Asia V at INR 445 per share.
- Operational Control: Post-transaction, KKR will become the largest shareholder, holding between 54% to 77% equity, and will assume sole control of HCG’s operations.
- Leadership Transition: Founder Dr. BS Ajaikumar to transition to Non-Executive Chairman, focusing on clinical excellence and R&D.
Summary: Global investment firm KKR has announced a definitive agreement to acquire a controlling stake in Healthcare Global Enterprises (HCG), a leading oncology-focused healthcare provider in India. The transaction involves purchasing up to 54% of HCG’s equity from CVC Asia V at a price of INR 445 per share. Following an open offer to public shareholders, KKR’s ownership is expected to range between 54% and 77%, granting them sole operational control of HCG.
Established in 1989, HCG operates 25 medical centers across 19 Indian cities, equipped with 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator machines. This acquisition aligns with KKR’s strategic focus on enhancing healthcare infrastructure and oncology services in India. Akshay Tanna, KKR’s Partner and Head of India Private Equity, emphasized the firm’s commitment to supporting HCG’s growth and delivering critical oncology care to a broader patient base.
In conjunction with the acquisition, HCG’s founder, Dr. BS Ajaikumar, will assume the role of Non-Executive Chairman. In this capacity, he will concentrate on advancing clinical practices, academic initiatives, and research and development within the organization. Dr. Ajaikumar expressed gratitude to CVC for their support and welcomed KKR as the new majority shareholder, highlighting a shared vision for clinical excellence and patient care.
This investment is financed through KKR’s Asia Fund IV and represents the firm’s latest venture into India’s healthcare sector. KKR’s previous investments in the region include partnerships with Baby Memorial Hospital, Healthium, Infinx, Max Healthcare, JB, and Gland Pharma. The transaction is anticipated to conclude by the third quarter of 2025, pending regulatory approvals.
