Bain ahead in race for cancer healthcare chain HCG: report

US private equity firm Bain Capital is ahead in the race for a controlling stake in Indian cancer hospital chain HealthCare Global Enterprises Ltd (HCG), Bloomberg reported citing unidentified people familiar with the matter.

Bain is looking to acquire a 60.4% stake in the listed company from CVC Capital Partners by paying a premium to the market price, the report said, citing the people who asked not to be identified as the information is private.

HCG, whose shares have slid about 3% this year, currently has a market cap of ₹4,930 crore, or about $587 million, valuing CVC’s 60.4% stake at about $356 million. CVC had made the investment in the company in 2020.

Negotiations for a potential deal are on and talks may still collapse as other bidders are also likely to enter the fray, the report said.

Founded in 1989, Bangalore-based HCG owns 21 comprehensive cancer care centers across the country that serve more than 200,000 patients every year, according to its website.

Private medical services in India is a booming sector that is drawing significant interest from global private equity and venture capital firms.

Last month, KKR & Co. agreed to acquires a major stake in Kerala’s Baby Memorial Hospital for an undisclosed sum, while Blackstone Inc. bought a controlling stake in two hospital chains, Care Hospitals and KIMS Health, last year.