CVC Capital Considering Sale Of Controlling Stake In Indian Cancer Hospital Chain HealthCare Global: Report

CVC Capital Partners is reportedly considering selling its controlling stake in Indian cancer hospital chain HealthCare Global Enterprises Ltd., according to a Bloomberg report citing people familiar with the matter.

The private equity firm is looking to identify buyers for its 60.4% stake in the stock market listed Indian healthcare firm, said the people, who asked not to be identified as the information is private. CVC's stake is worth around $358 million, according to data compiled by Bloomberg.

The buyout company may seek a premium of at least 20% for the shares, said one of the people aware of the matter. It could even explore a premium of as much as 50% depending on market conditions, the person said.

Shares of HealthCare Global closed almost 3% higher at Rs 353.00 per share on BSE on Wednesday. The stock has climbed almost 30% in the last one year, while in this year so far the stock is 24%.

According to the report, the matter is in an early stage of consideration and there is no certainty they will result in a deal, the people said. A representative for CVC refused to comment, while a HealthCare Global representative didn't respond to requests for comment.
A rising middle class and an aging population have supported the demand for private medical services in Asia, enhancing deal activity in the healthcare sector.

CVC acquired a controlling stake in HealthCare Global in the year 2020 by buying new shares and convertible warrants. It bought more shares later via a mandatory open offer.

HCG Cancer Hospital is one of the best cancer hospitals in India. It has a chain of 24 comprehensive cancer centers, which offer cutting-edge diagnostics and world-class cancer treatments across the nation.
The Bengaluru-based cancer hospital chain claims to own over 24 cancer centers across India and serves more than 200,000 patients every year.