American private equity giant KKR has announced plans to acquire a 51% stake in Bengaluru-based oncology hospital chain HealthCare Global Enterprises (HGE) from CVC Capital Partners for ₹3,203 crore. This marks KKR’s second major investment in India’s hospital sector following its previous investment in Baby Memorial Hospital. The firm had earlier exited Max Healthcare Institute in 2022.
As part of the acquisition, KKR will launch an open offer to HGE’s public shareholders for an additional 26% stake at ₹445 per share, in compliance with India’s takeover regulations. Should the open offer not secure at least 54% ownership, KKR will purchase an additional 3% from CVC, according to the investment agreement. The deal values HGE at ₹6,203 crore, slightly below its market capitalization of ₹7,000 crore based on Friday’s closing price of ₹500 per share.
KKR’s final equity stake in HGE is expected to range between 54% and 77%, depending on the open offer results and investment conditions.
Leadership Transition and Board Changes
Currently, HGE’s primary promoters include Aceso, an entity affiliated with CVC Capital Partners (holding 60.35% stake), along with Dr. B.S. Ajaikumar and family (10.87%).
Following the acquisition, KKR will assume sole control of HGE, and existing promoters will step back from management. Dr. Ajaikumar and his daughter, Anjali Ajaikumar Rossi, will transition to non-executive director roles, with Ajaikumar set to become the non-executive chairman after the deal’s completion.
Expansion Plans and Investment Structure
HGE operates 25 medical centers across 19 cities in India, with a total capacity of 2,500 beds and nearly 100 operating theatres.
KKR’s investment will be made through Hector Asia Holdings II and KIA EBT II. The firm will appoint all non-independent directors to HGE’s board and retain the first right to acquire the Ajaikumar family’s remaining stake whenever they choose to divest.
Additionally, HGE employees holding vested stock options will have the opportunity to convert their shares into cash. The company has agreed to accept up to 16.19 lakh employee stock options, expected to be bought at ₹445 per share.
The transaction is anticipated to close by Q3 2025.
