KKR will acquire controlling stake in this company, shares will be monitored

American private equity giant KKR has informed that it has agreed to acquire a controlling stake in cancer treatment chain Healthcare Global Enterprises Limited (HCG) from private equity company CVC at a price of Rs 445 per share, which will be around $ 400 million. As per the rules of market regulator SEBI, KKR will first acquire 51 percent stake and launch an open offer for 26 percent.

After the transaction is completed, KKR is expected to have an equity stake between 54% and 77%.

What information did the company give?

The company has said that KKR & Co will buy 54% stake in hospital chain Healthcare Global Enterprises (HCG) from CVC Asia V for $400 million (about Rs 3,465 crore).

KKR will buy HCG shares at Rs 445 per share and will bring an open offer to the company’s shareholders to buy an additional 26% stake. Based on the response of the shareholders, an additional cost of Rs 1,600 crore will be incurred on this. The price of the open offer will be as per the relevant formula of the Securities and Exchange Board of India.

The company said that KKR will replace CVC as the largest shareholder in HCG and will take sole control of its operations. Dr BS Ajaykumar, founder and chairperson of the chain, will assume the role of non-executive chairman and focus on advancing clinical, academic and research.