December 1, 2023

Healthcare Global

Splash Healthcare Global All Over

CVC Capital puts Healthcare Global on the block, shares surge 4%

Private equity giant CVC Capital has officially launched the process to sell its controlling stake in Healthcare Global.

Sources close to the development told CNBC-TV18 that CVC Capital is aiming for a significant exit, putting up their 60.42% stake in the hospital chain for sale at an asking price exceeding 4000 crore.

Following the news shares of Healthcare Global surged nearly 4%. At 1:44 pm Healthcare Global shares are trading at ₹372.25, up 3.2% from the previous close on the BSE. 

The decision to part ways with HealthCare Global marks a strategic move by CVC Capital, as the private equity firm seeks to maximize its returns from the healthcare industry. To facilitate this substantial transaction, CVC Capital has enlisted the services of a prominent global investment bank, emphasizing their commitment to a seamless sale process.

While several potential suitors are reportedly considering this enticing opportunity, sources indicate that the leading contenders are likely to be the private equity heavyweights, KKR and BPEA EQT. In addition to the private equity players, Manipal Hospitals has emerged as a significant strategic contender with a keen interest in acquiring a substantial stake in HealthCare Global.

However, the question of Dr. Ajaikumar’s involvement in the stake sale remains uncertain. Dr. Ajaikumar, with a 10.88% stake in HealthCare Global, is a pivotal figure in this scenario. Clarity on his role in the sale process is anticipated to materialize as the deal progresses further.

Dr Ajaikumar declined to comment on the deal, CVC Capital was unavailable for a comment. CNBC-TV18 did not get any comment from KKR, BPEA EQT, Manipal Hospitals on the deal developments.

An anonymous source with knowledge of the situation shed some light on the sale dynamics, stating, “The seller is expected to command a valuation premium, considering the nature of the deal and the increasing interest of private equity firms in the healthcare sector. HCG Hospitals has bolstered its valuation through a series of strategic acquisitions, further enhancing its appeal.”

Presently, CVC Capital and Dr. Ajaikumar collectively hold 71.30% stake in HealthCare Global. As the deal process takes shape, the healthcare industry and financial markets are keenly observing the outcomes, anticipating the ramifications of this significant stake sale in HealthCare Global.