Private equity firm CVC Capital Partners is considering selling a 60.4% stake in Indian cancer hospital chain HealthCare Global Enterprises (HEAC.NS), Bloomberg News reported on Tuesday, citing people familiar with the matter.
The stake is worth about $345m and CVC may seek a premium of 20% for the shares or go as high as 50% depending on market conditions, the report said.
CVC Capital and HealthCare Global did not immediately respond to Reuters requests for comment.
The Bengaluru-based cancer hospital chain owns over 24 cancer centers across India and serves more than 200,000 patients every year, according to its website.
Private healthcare is booming in India due to a growing population and rising disposable incomes. Global consultancy firm PwC projects 12% to 14% annual growth for India’s private healthcare market currently worth around $48bn.
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Potential buyers for HealthCare Global could include other private equity firms, strategic investors, such as other healthcare companies, or even the Indian government.
The sale of CVC’s stake in HealthCare Global is a sign of the growing interest in the Indian healthcare sector from both domestic and international investors. The sector is expected to grow rapidly in the coming years due to a growing population and rising disposable incomes.
The sale of CVC’s stake in HealthCare Global is unlikely to have a direct impact on patients. However, it is possible that the new owner could make changes to the company’s operations, such as expanding its network of hospitals or introducing new services.
Overall, the sale of CVC’s stake in HealthCare Global is a positive development for the Indian healthcare sector. It shows that there is strong investor interest in the sector, which could lead to increased investment and innovation.
Source: Reuters
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