PE firm CVC Capital has launched a deal to sell a controlling stake in Healthcare Global, driving the shares of the country's leading cancer-care hospital chain up over 4 percent to Rs 375 on the NSE as of 12.55pm on October 31.
The deal was reported by CNBC-TV18 citing sources. The report also added that other private equity firms like KKR, BPEA EQT and Manipal Hospitals are in talks for a buyout. CVC Capital aims to sell its 60.42 percent stake for over Rs 4,000 crore. As per the report, an investment bank has also been appointed to advise on the deal.
HealthCare Global, founded in 1989 in Bangalore, owns 24 comprehensive cancer centres across India, according to the company website. CVC Partners acquired around 59 percent stake in the cancer hospital chain for Rs 1,100 crore in 2020.
According to the CNBC-TV18 report, the hospital chain's promoter BS Ajaikumar along with other interested parties like KKR, BPEA EQT and Manipal Hospitals declined to comment the news. Promoter BS Ajaikumar and his family owns 10.88 percent stake in Healthcare Global.
Promoters CVC and BS Ajaikumar own a total 71.30 percent stake in Healthcare Global.
HCG reported a net profit of Rs 3.65 crore in the April –June quarter of FY 24, up 47.2 percent in comparison to Rs 2.48 crore during the first quarter of FY23. It posted revenue from operations at Rs 459.71 crore, up 12.9 percent as against Rs 407.31 crore during the corresponding quarter of FY23.
The healthcare player had made important strides in expanding its regional network with acquisitions in Indore and Nagpur.
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