Healthcare Global Enterprises (HCG), one of India’s largest oncology-focused healthcare providers, has entered a transformative partnership with global investment firm KKR.
KKR has signed a definitive agreement with CVC, a global private markets manager. It will acquire a majority stake in HCG for $400 million (INR 3,465 crore). This acquisition will make KKR the largest shareholder, giving it sole control of HCG’s operations.
Key Details of the Acquisition
As part of the deal, KKR will purchase up to 54% of HCG’s equity from CVC Asia V at INR 445 per share. Additionally, KKR will launch an open offer to acquire more shares from public stakeholders. This move complies with SEBI’s takeover regulations. Once completed, KKR expects to own between 54% and 77% of HCG.
KKR’s Vision for HCG
Akshay Tanna, Partner and Head of India Private Equity at KKR, emphasized the strategic importance of the investment. “HCG is a pioneer in cancer care in India and has played a vital role in the healthcare sector for the past three decades. Healthcare remains a key focus for KKR, and we are committed to enhancing HCG’s capabilities, strengthening medical infrastructure, and ensuring better access to quality oncology treatment,” he stated.
Leadership Transition
Dr. BS Ajaikumar, HCG’s founder, will transition into the role of Non-Executive Chairman. In this position, he will focus on clinical excellence, academic advancements, and research initiatives. Expressing appreciation for CVC’s support, Dr. Ajaikumar welcomed KKR’s investment. “Patient well-being and clinical innovation have always been our priorities. KKR brings vast investment and operational expertise in healthcare, both in India and globally. I am delighted to have them as a majority shareholder in Healthcare Global Enterprises,” he said.
CVC Reflects on Its Partnership with HCG
CVC played a crucial role in HCG’s growth, helping it expand and solidify its position as a leading healthcare organization. Siddharth Patel, Managing Partner at CVC, highlighted the success of their collaboration. “We are proud to have supported HCG’s transformation and contributed to its mission of delivering high-quality care to patients across India,” he remarked.
KKR’s Broader Healthcare Investments in India
The investment aligns with KKR’s long-term commitment to India’s healthcare sector. The firm has previously invested in Baby Memorial Hospital, Healthium, Infinx, Max Healthcare, JB Pharmaceuticals, and Gland Pharma. MSN.com reports that the transaction will likely close by the third quarter of 2025, pending customary regulatory approvals.
