KKR invests $89m in Apollo Hospitals' parent

The GP will subscribe to the convertible debentures issued by PCR with an option to convert these debentures into equity shares of listed Apollo Hospitals after five years. The promoters also will have the right to buy back these instruments at the end of two years.

At the end of September, PCR held an 18.42% stake in Apollo Hospitals. If KKR chooses to convert the debentures it will end up with a 4-5% stake.

The Chennai-headquartered Apollo group includes over 8,420 beds across 51 hospitals, 1,503 pharmacies, 92 primary care and diagnostic clinics, and 100 telemedicine units.

KKR made the investment with its affiliates and select investors. "This partnership has been initiated through our alternative credit business in India, and will look to pave the way for a much broader engagement between us as partners," Sanjay Nayar, CEO for KKR India, said in a statement.

Earlier this month Apollo founder Prathap Reddy said talks with KKR were for about 3-4% of Apollo, which should work out around 7% of PCR for approximately around $100 million.

Apollo will use the funds to repay promoters' debt and build more hospitals. It has outlined a capital expenditure plan of around INR2 billion, which will include the addition of 2,800 beds across the country over a three-year period through debt and internal accruals.

Apax Partners completed its exit from Apollo Hospitals earlier this year, generating a reported 3.3x return.

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• Topics
• Healthcare
• South Asia
• Expansion
• KKR
• India
• healthcare
• Growth capital