New Delhi, Feb. 24 -- Private equity firm KKR has agreed to acquire a controlling stake in oncology hospital chain Healthcare Global Enterprises Ltd from European buyout firm CVC Capital.

As part of the transaction, KKR will acquire up to 54% of HCG from CVC at a price of Rs 445 per share, the PE firm said in a statement. This translates to Rs 3,428 crore, or about $400 million.

KKR will also make an open offer to public shareholders of HCG as per regulatory norms to buy a stake of up to 26% at Rs 504.41 per share. Upon completion of the transaction, KKR is likely to hold between 54% and 77% of the Indian hospital chain. Shares of HCG closed at Rs 500 on the BSE on Friday.

The transaction comes months after KKR returned to India's hospital sector with the acquisition of Baby Memorial Hospital, a regional multi-specialty hospital chain, last year.

"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," said Akshay Tanna, partner and head of India private equity at KKR.

KKR is making the investment from its fourth Asia fund, which hit final close in 2021 after raising $15 billion.

For CVC, which holds a 60.35% stake in HCG, the deal marks its second exit move from India this month. It previously agreed to sell a 67% stake in the Indian Premier League cricket franchise team Gujarat Titans to Torrent Group.

Founded in 1989, HCG is one of India's largest oncology hospital chains. It operates 25 centres with 2,500 beds across 19 cities. The company was founded by Dr. BS Ajaikumar, who will now take on the role of non-executive chairman and focus on driving clinical, academic and research and development excellence.

KKR's other healthcare-related bets in India include investments in Healthium, a medical devices company; Infinx, a tech-enabled healthcare revenue solutions provider; and drugmaker JB Chemicals. It has previously invested in and exited hospital chain Max Healthcare and drugmaker Gland Pharma.

The transaction for HCG is likely to close by the third quarter of 2025, subject to customary closing conditions and regulatory approvals.

Published by HT Digital Content Services with permission from VC Circle.