Healthcare Global rises 7% after KKR to acquire 54% stake in company

Healthcare Global Enterprises shares jumped 7 per cent in Monday's trade on BSE, logging an intraday high at Rs 535 per share. The northward movement in the stock came after KKR and Global Healthcare signed an agreement with CVC to acquire up to 54 per cent of Healthcare Global.

 

As part of the transaction, KKR will acquire up to 54 per cent of equity in Global Healthcare from CVC Asia V at Rs 445 per share. KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. CVC is a leading global private markets manager with a network of 30 office locations throughout EMEA, the Americas, and Asia, with approximately €200 billion of assets under management. 

 

Around 10:59 AM, Healthcare Global share price was up 4.2 per cent at Rs 521 per share on BSE. In comparison, the BSE Sensex was down 1.08 per cent at 74,498.92. The market capitalisation of the company stood at Rs 7,262.88 crore. The 52-week high of the stock was at Rs 563.15 per share and the 52-week low was at Rs 310.10 per share.

 

As part of the transaction, KKR will acquire up to 54 per cent of equity in HCG from CVC Asia V at a purchase price of Rs 445 per share. The global investment firm makes its investment from its Asia Fund IV. This transaction marks KKR’s latest investment in India’s healthcare space, the filing read.

 

Upon completion of the transaction, KKR is expected to hold an equity stake of between 54-77 per cent. Further, KKR will first launch an open offer for 26 per cent and will acquire 3,70,90,327 equity shares of face value of Rs 10 each of HealthCare Global Enterprises.

 

“Healthcare Global is a pioneer in cancer care in India and has established itself as an important healthcare provider in the country for the past three decades. 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, KKR.

 

In the past one year, Healthcare Global shares have gained 37 per cent against Sensex's rise of 3 per cent.