KKR Acquires Controlling Stake in Indian Healthcare Provider Healthcare Global Enterprises for $400 Million

KKR to be the largest and controlling shareholder

KKR, a leading global investment firm, and Healthcare Global Enterprises (BSE: 539787; NSE: HCG; "HCG"), a leading healthcare organization in India, today announced the signing of definitive agreements with CVC, a leading global private markets manager, under which funds managed by KKR ("KKR") will become the largest shareholder in HCG and assume sole control of HCG's operations. Dr. BS Ajaikumar, Founder of HCG, will take on the role of Non-Executive Chairman and be focused on driving clinical, academic and research and development excellence.

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As part of the transaction, KKR will acquire up to 54% of equity in HCG from CVC Asia V at a purchase price of INR 445 per share. Pursuant to the Securities and Exchange Board of India's ("SEBI") Takeover Regulations, an open offer will be conducted by KKR to purchase additional equity shares in HCG from public shareholders. Upon completion of the transaction, KKR is expected to hold an equity stake of between 54-77%.

Founded in 1989, HCG is one of India's largest oncology hospital chains. HCG operates 25 medical care centers across 19 cities with best-in-class infrastructure including 2,500 beds, nearly 100 operating theaters and 40 linear accelerator machines (LINACs).

Akshay Tanna, Partner and Head of India Private Equity, KKR, said, "HCG is a pioneer in cancer care in India and has established itself as an important healthcare provider in the country for the past three decades. As healthcare continues to be a thematic focus for KKR in India, our investment in HCG will support the development of medical infrastructure and the delivery of critical oncology services and care to more patients in the country. We look forward to leveraging KKR's global healthcare expertise to strengthen HCG's offerings and working with Dr. BS Jaikumar to further enhance HCG's clinical excellence."

Dr. BS Ajaikumar, Founder, HCG, said, "I want to thank CVC for their support through the years, helping the management to put HCG in the strong position it is in today. I am delighted to welcome KKR, with their investment and operational expertise in healthcare in India and globally, as a majority shareholder in HCG. Patient well-being and outcomes will always be a top priority for us at HCG, and in my new role as Non-Executive Chairman, I will focus on clinical aspects involving multi-disciplinary approach to cancer care, and research and development; and look forward to the journey of HCG where it continues to stay at the forefront of clinical excellence, research, and academics."

Siddharth Patel, Managing Partner, CVC, said, "We are proud to have supported HCG's transformation at a critical juncture in time to build it into one of India's leading healthcare organizations and the delivery of high-quality care to many patients over the years." Amit Soni, Partner, CVC added, "Our partnership with Dr. Ajaikumar and the management team is a testimony to the ability to combine clinical and professional acumen to increase the reach of cancer care in India. We thank Dr. Ajai and the management for their unparalleled support and commitment to a common vision."

KKR makes its investment from its Asia Fund IV. This transaction marks KKR's latest investment in India's healthcare space. Past investments in this sector have included Baby Memorial Hospital, a leading regional multi-specialty hospital chains in India; Healthium, a leading Indian medical devices company; Infinx, a tech-enabled healthcare revenue solutions provider; Max Healthcare, one of India's largest hospital networks; JB, a leading branded formulations pharmaceutical company in India and Gland Pharma, a leading Indian pure-play generic injectable pharmaceutical products company.

The transaction is expected to close by the third quarter of 2025, subject to customary closing conditions and regulatory approvals.

About HCG

HealthCare Global Enterprises Ltd. (HCG), headquartered in Bengaluru, is one of the largest providers of cancer care in India. Through its network of 25 comprehensive cancer centers, HCG has brought advanced cancer care to the doorstep of millions of people. HCG's comprehensive cancer centers provide expertise and advanced technologies for the effective diagnosis and treatment of cancer under one roof.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE:KKR), please visit KKR's website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at www.globalatlantic.com.

About CVC

CVC is a leading global private markets manager with a network of 30 office locations throughout EMEA, the Americas, and Asia, with approximately €200 billion of assets under management. CVC has seven complementary strategies across private equity, secondaries, credit and infrastructure, for which CVC funds have secured commitments of approximately €249 billion from some of the world's leading pension funds and other institutional investors. Funds managed or advised by CVC's private equity strategy are invested in approximately 140 companies worldwide, which have combined annual sales of over €162 billion and employ over 580,000 people. For further information about CVC please visit: https://www.cvc.com/. Follow us on LinkedIn.

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