Bain Is Said To Be Frontrunner For Indian Hospital Chain HCG
Bain Capital has emerged as the frontrunner to acquire a controlling stake in Indian cancer hospital chain HealthCare Global Enterprises Ltd., according to people familiar with the matter.
(Bloomberg) -- Bain Capital has emerged as the frontrunner to acquire a controlling stake in Indian cancer hospital chain HealthCare Global Enterprises Ltd., according to people familiar with the matter.
The US private equity firm is considering buying CVC Capital Partners’ 60.4% stake in the Mumbai-listed company, said the people, who asked not to be identified as the information is private. Bain may consider paying a premium to the market price for the stake, the people said.
Shares of HCG, as the company is known, have lost roughly 3% this year, giving the company a market value of $589 million. CVC’s stake would currently be worth about $356 million.
Deliberations are ongoing and talks could still fall apart, the people said. Other bidders could also emerge, they added. Representatives for Bain and CVC declined to comment, while HCG didn’t respond to a request seeking comment.
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A growing middle class and rickety state-owned medical infrastructure have boosted demand for private medical services in India, accelerating deal activity in the health care sector. Last month, KKR & Co. agreed to buy a controlling stake Baby Memorial Hospital in Kerala for an undisclosed amount. Blackstone Inc. bought a controlling stake in two hospital chains, Care Hospitals and Kimshealth, in 2023.
Founded in 1989 in Bangalore, HCG owns 21 comprehensive cancer care centers across India and serves more than 200,000 patients every year, its website shows. CVC invested in the company in 2020.
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