The funds managed by KKR will become HCG's largest shareholder and envisage the sole management of HCG's operations, the statement added.
“Healthcare continues to focus on themes for KKR in India. Investment in HCG supports the development of healthcare infrastructure and the delivery of important oncology services and care to more patients in the country. “KKR.
ET first reported that KKR confirmed its acquisition of HCG in the February 14th edition. At the beginning of December 4th, we first reported that KKR was approaching an acquisition.
The hospital chain stocks have valued 30.28% over the past six months due to improved financial performance and sales forecasts. After acquiring Baby Memorial Hospital KKR last year, KKR made a comeback to the sector after one of its biggest paychecks in India. End Maximum Healthcare.
After the transaction is completed, Dr. BS Ajaikumar, a luminator who turned to oncologist who founded the chain in 1989, takes on the role of non-executive chairman and focuses on promoting clinical, academic and research and development excellence. . He will continue to own 10.87% of the company;
“Patient happiness and outcomes have always been a top priority for us at HCG, and my new role as non-executive chairman focuses on clinical aspects including interdisciplinary approaches to cancer care and research and development. I guess it.” Ajaikumar.hcg operates 25 medical centres in 19 cities with best-in-class infrastructure, including 2,500 beds, 100 operating theatres and 40 linears. Accelerator machine (Linak). The company has improved efficiency and is also doing recent growth projects for both organic and inorganic. Late last year, HCG acquired Vizag's MG Hospital. Vizag is a comprehensive care provider with 196 operational beds and a healthy margin of 35%. Additionally, it has opened a comprehensive 200-bed cancer care centre in Ahmedabad and has added 125 beds to North Bangalore. The company plans to add 900 incremental beds over the next four to five years to gain new opportunities. According to Analyst's expectations, the FY24 PAT of Rs 41 trillion is expected to pass Rs 200 by FY27.
KKR will invest from Asia Fund IV. Beyond hospitals, the US Buyoit Group is also making a big bet on Healthium, a leading Indian medical device company. Infinx, a high-tech healthcare revenue solution provider. JB Chemicals, India's leading branded pharmaceutical drug company, and Gland Pharma, India's pure, pure, general-purpose, general pharmaceutical product company.
Luxembourg-based CVC Capital, which recently monetized its investment in the IPL franchise Gujarat Titans, has now managed to control HCG at around Rs 1,049 trillion by purchasing new shares and convertible warrants in June 2020. I bought this. Earn 3.4x returns under Rupee conditions at the initial purchase price of Rs 130/share.
“The partnership between Dr. Ajakumar and his management team is testament to our ability to combine clinical and professional insights to increase the scope of cancer treatments in India,” added CVC partner Amit Soni.
Goldman Sachs, JP Morgan, Allegro & Ambit were trading advisors.
The transaction is expected to close by the third quarter of 2025 and is subject to customary closure conditions and regulatory approval.
The cancer industry is growing at a CAGR of 17%, with HCG exceeding the growth of the industry.
