CVC Mulls Selling Controlling Stake in HealthCare Global

This merger aims to navigate the evolving healthcare landscape in India and ensure that HealthCare Global continues to provide critical medical services to its extensive patient base.

Private equity firm CVC Capital Partners is reportedly considering the sale of its controlling stake in the Indian cancer hospital chain HealthCare Global Enterprises Ltd. (HealthCare Global). 

The move comes as demand for private medical services in Asia continues to rise, driven by a growing middle class and an aging population.

CVC Capital Partners, which currently holds a 60.4% stake in HealthCare Global, is actively seeking potential buyers for its shares, as reported by Bloomberg. According to data compiled by the same publication, the stake is estimated at approximately $345 million.

While discussions are still in their early stages, sources suggest that CVC may be looking to secure at least 20% of its shares, possibly seeking up to a 50% premium depending on market conditions.

This merger aims to navigate the evolving healthcare landscape in India and ensure that HealthCare Global continues to provide critical medical services to its extensive patient base.

HealthCare Global, founded in 1989 in Bengaluru, operates 24 comprehensive cancer centers across India, catering to over 200,000 patients annually. 

CVC Capital Partners initially acquired a controlling stake in HealthCare Global in 2020 by purchasing new shares and convertible warrants. 

Subsequently, the firm increased its holdings through a mandatory open offer. HealthCare Global's shares have been robust this year, with a 19% increase, resulting in a current market value of approximately $572 million.

It is important to note that these deliberations are in their early phases, and there is no guarantee that they will culminate in a final agreement. CVC and HealthCare Global have refrained from making official statements regarding these developments.

The potential sale of CVC's stake in HealthCare Global reflects the ongoing trends in the Asian healthcare sector, where investors and businesses are actively exploring opportunities to meet the growing healthcare needs of the region's population.