KKR & Co. agreed to acquire Medicover AB's Indian hospital operations as the US private equity firm seeks to expand its health-care investments in the world's most populous country.
The disposal gives Medicover Hospitals India an enterprise value of €1.2 billion ($1.4 billion), the Stockholm-based company said in a statement Thursday. The sale will generate gross cash proceeds of €740 million and help Medicover accelerate its strategic push into Poland, Germany and Romania.
"The transaction will ensure a stronger financial position with flexibility to capture attractive opportunities in those markets," John Stubbington, Medicover Chief Executive Officer, said.
The deal is expected to close in the fourth quarter, pending closing conditions and regulatory approvals.
The agreement with KKR marks a change of plans after Medicover said in December 2024 that it was evaluating a listing in India. Following the review, Medicover said it concluded the sale was a superior alternative for the company, its stakeholders and partners.
Established in 2017, Medicover India has a network of 24 hospitals, with about 4,800 beds in South and West India.
KKR plans to invest in Medicover's talent, technology, infrastructure and clinical capabilities in India, according to Akshay Tanna, partner and head of India private equity at KKR. It will also work on reinforcing governance and operational standards, Tanna said.
Shares of Medicover gained as much as 9.6% in Stockholm on Thursday. The stock has dropped by roughly 11% over the past year, giving the company a market value of $3.9 billion.
Rothschild & Co. was the financial adviser to Medicover.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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