CVC to invest in Indian cancer care chain operator

HCG identified CVC’s proposal to acquire shares from the promoter alongside plans to issue fresh equity. If accepted, the investment could also trigger an open offer for an additional 26% in the company held by public shareholders, according to a filing. The size of CVC’s investment has not been disclosed.

Founded in 1989, HCG owns and manages a network of 21 oncology treatment centers nationwide. It also manages four hospitals, three diagnostic centers, one day care chemotherapy center, and eight fertility centers. Other assets include a minority stake in Strand Lifesciences, a provider of bioinformatics solutions, and operations in four African countries.

The company has grown over the years with the help of private equity investment. Temasek Holdings invested in the company in 2013, facilitating the exit of Evolvence India Life Sciences Fund, a vehicle managed by Invascent Capital. In 2015, HCG raised INR6.5 billion through a domestic IPO priced at INR205-218 per share. The stock closed at INR95.4 on May 7, the day CVC's offer was announced.

According to its latest annual report, revenue increased 17.8% year-on-year to INR9.7 billion ($129 million) for the 12 months ended March 2019. However, the company posted a net loss of INR20.8 million compared to a profit of INR20 million a year earlier. Over the past eighteen months, seven new cancer care centers have been opened.

CVC, which closed its fifth Asia fund at the hard cap of $4.5 billion last month, pursues control and partnership investments in core consumer and services sectors. In India, the GP acquired a majority stake two years back in legal process outsourcing business UnitedLex. The company is based in the US with significant operations in India.

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• Topics
• South Asia
• PIPEs
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• India
• CVC Capital Partners