Healthcare Global shares surged over 4 percent to reach a 52-week high on the morning of February 19, following reports of private equity giants EQT (formerly Baring PE Asia-EQT), TPG Capital, and KKR competing for a controlling stake in the cancer hospital chain.
According to sources cited by The Economic Times, these three private equity firms are vying for the controlling stake currently held by CVC Capital, which holds a 60.41 percent stake in Healthcare Global through its affiliate Aceso Company Pte.
As of 10:35 am, Healthcare Global was trading at Rs 395.35 on the NSE.
CVC Capital had acquired a 59 percent stake in Healthcare Global in 2020 at a valuation of Rs 1,100 crore. The firm is reportedly seeking to divest its entire controlling stake in the company, having more than doubled its investment in the cancer hospital chain.
In its quarterly report released last week, Healthcare Global reported a nearly 11 percent year-on-year increase in net revenue to Rs 469.87 crore. This growth was primarily attributed to an enhancement in average revenue per operating bed, which rose to Rs 42,788, marking a 15.6 percent increase.
However, the company’s net profit for Q3 declined by 24 percent year-on-year to Rs 5.4 crore, mainly due to capacity expansion initiatives.
