KKR said to be in advanced talks to acquire SRL

KKR & Co, one of the world’s largest private equity firms, is in advanced talks to buy stake in medical-diagnostics company SRL, people with knowledge of the matter said.

The deal could value New Delhi-based SRL at about Rs 5,000 crore ($774 million), said the people, who asked not to be identified because the information is private. Private equity firms including TPG and Bain Capital were also in talks for a stake in the company, people with knowledge of the matter said last month.

The diagnostics company, which claims to be the largest in the South Asian nation, is being spun off from Fortis Healthcare, India’s second-largest private hospital chain by market value. The majority shareholders of Fortis, brothers Malvinder Singh and Shivinder Singh, will control a 40.6 per cent stake of SRL when its listed, according to an exchange filing in August.

Talks between KKR and Fortis are ongoing and could still fall apart, the people said.

Representatives for KKR and Fortis declined to comment.

The Singhs were seeking a valuation of about Rs 6,200 crore for the diagnostic business, a person familiar with the process said last month. The same three private equity firms, as well as IHH Healthcare, are also among bidders considering an investment in Fortis, the people said.

Bloomberg