The clarification comes a day after Medicover AB disclosed that it had been approached by KKR and was in discussions regarding a possible sale of its Indian operations. The company said there was no certainty that the talks would lead to a transaction and reiterated that preparations for an IPO of its India hospital business were continuing.
“KKR approached Medicover and discussions are ongoing. However, there are no binding offers or agreements in place,” P Hari Krishna, executive director, Medicover Hospitals, told Business Standard. He said the company remained focused on pursuing a public listing and that the discussions with KKR had not altered its plans. “The IPO is our preferred route and we are actively working towards it,” Krishna said.
According to him, Medicover Hospitals is targeting a market debut around September or October, subject to market conditions, and expects to file its draft red herring prospectus within the next three to four months.
The executive declined to comment on media reports suggesting that Medicover AB may sell its entire 66.9 per cent stake in the India business, saying the discussions remained at a preliminary stage and there was nothing concrete to disclose beyond the parent company’s official statement.
He also dismissed media reports on the valuation of the India business being discussed at around $1.05 billion, saying the company had no information on how such figures were arrived at. “We have not yet finalised investment bankers for the IPO. Once they are appointed, they will advise on the deal size, valuation, and market capitalisation,” Krishna said.
Medicover Hospitals currently operates around 6,000 beds across Maharashtra, Telangana, Andhra Pradesh, and Karnataka. The company plans to focus on consolidating its existing operations over the next two years before entering a fresh phase of expansion.
“We have significant headroom for growth within our existing markets. After listing, we will evaluate opportunities to add hospitals in cities such as Mumbai, Pune, Nagpur, and Hyderabad, among others," Krishna said.
Asked whether KKR’s entry could accelerate expansion plans, he said it was too early to speculate on the outcome of the discussions.
The executive indicated that the talks may have originated at the parent company level and that the India management team became aware of them only after Medicover AB issued its disclosure.
Medicover AB, which is listed in Sweden, said it would provide further updates if and when appropriate.
 "initial public offering, IPO")