KKR said it has agreed to acquire a controlling stake in cancer treatment chain HealthCare Global Enterprises Ltd (HCG) from fellow private equity firm CVC for ₹445 per share, amounting to around $400 million.
KKR replaces CVC as the largest shareholder in HCG and assumes sole control of its operations, the company said. Dr BS Ajaikumar, founder and chairperson of the chain, will take on the role of non-executive chairman and focus on driving clinical, academic and research.
KKR will first acquire 51% stake and launch an open offer for 26%, according to Securities and Exchange Board (Sebi) regulations. If it does not secure a minimum of 3% through the open offer, it will acquire this stake from CVC, a person familiar with the deal said.
Once the transaction is completed, KKR is expected to hold an equity stake of between 54% and 77%, the firm said.
HCG’s stock closed at ₹500 per share on the BSE on Friday.
CVC, which earlier held a 60% stake in the entity, will initially sell 51% to KKR and retain the balance stake. Founder Dr Ajaikumar will retain 10%.
The transaction is expected to close by the third quarter of 2025, subject to customary closing conditions and regulatory approvals.
HCG operates 25 medical care centres across 19 cities with 2,500 beds, nearly 100 operating theatres and 40 linear accelerator machines used in radiation therapy.
“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. We look forward to leveraging KKR’s global healthcare expertise to strengthen HCG’s offerings and working with Dr. BS Ajaikumar to further enhance HCG’s clinical excellence,” said Akshay Tanna, partner and head of India private equity at KKR.
“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,” Dr Ajaikumar.
This transaction marks KKR’s latest investment in India’s healthcare space from its Asia fund V and follows the acquisition of Kerala-based Baby Memorial Hospital.
KKR has also acquired medical devices firm Healthium, a leading Indian medical devices company. In May 2024, KKR acquired Infinx, a tech-enabled healthcare revenue solutions provider.