(Bloomberg) -- CVC Capital Partners is exploring selling its controlling stake in Indian cancer hospital chain HealthCare Global Enterprises Ltd., according to people familiar with the matter.
The private equity firm is looking to identify buyers for its 60.4% in the Mumbai-listed company, said the people, who asked not to be identified as the information is private. CVC’s stake is worth about $358 million, according to data compiled by Bloomberg.
The buyout firm may seek a premium of at least 20% for the shares, one of the people said. It could even look for a premium of as much as 50% depending on market conditions, the person said.
Shares of HealthCare Global jumped as much as 5.5% in early Wednesday trading in Mumbai, their biggest advance in more than three weeks. The stock has climbed nearly 23% this year, giving the company a market value of about $593 million.
Considerations are at an early stage and there’s no certainty they will result in a deal, the people said. A representative for CVC declined to comment, while a representative for HealthCare Global didn’t respond to requests for comment.
A rising middle class and an aging population have boosted demand for private medical services in Asia, accelerating deal activity in the health-care sector. Luye Medical Group is weighing a sale of its oncology business in Singapore, while TE Asia Healthcare Partners is considering selling its oncology centers in Hong Kong, Bloomberg News reported earlier this month.
HealthCare Global, founded in 1989 in Bangalore, owns 24 comprehensive cancer centers across India, its website shows. It serves more than 200,000 patients every year.
CVC bought a controlling stake in HealthCare Global in 2020 through buying new shares and convertible warrants. It acquired more shares later through a mandatory open offer.
--With assistance from Swetha Gopinath and Anto Antony.
(Updates the market value of CVC’s stake in second paragraph and adds HealthCare Global’s share moves in fourth paragraph.)
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