The three private equity firms are considering acquiring the 60.41 percent controlling stake in the cancer hospital chain currently held by CVC Capital.
Shares of Healthcare Global surged over 4 percent to reach a 52-week high on the morning of February 19 following reports that private equity funds EQT (formerly known as Baring PE Asia-EQT), TPG Capital, and KKR were competing to acquire a controlling stake in the cancer hospital chain.
According to a report in The Economic Times, the three private equity firms are targeting the controlling stake currently held by CVC Capital. The investment firm currently holds a 60.41 percent stake in Healthcare Global through its associate company, Aceso Company Pte.
In 2020, CVC Capital acquired a 59 percent stake in Healthcare Global at a valuation of Rs 1,100 crore. According to the report, the firm is seeking to exit the company by divesting its entire controlling stake after more than doubling its investment in the cancer hospital chain.
The hospital chain released its quarterly financial results last week, revealing a nearly 11 percent year-on-year increase in net revenue to Rs 469.87 crore. This growth was attributed to an improvement in average revenue per operating bed, which rose to Rs 42,788, reflecting a 15.6 percent increase.
However, the company’s net profit for Q3 was impacted by capacity expansion, leading to a 24 percent year-on-year decline to Rs 5.4 crore.
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