Companies

Apollo announces deal with KKR

Our Bureau New Delhi | Updated on November 24, 2017 Published on October 28, 2013

Apollo Hospitals has formally announced that New York-based private equity (PE) firm Kohlberg Kravis Roberts (KKR) will invest Rs 550 crore in the hospital chain.

The PE fund will buy convertible debentures of PCR Investments, a promoter of Apollo Hospitals. The buyer can convert the investment into equity shares of Apollo Hospitals at the end of five years, and PCR Investments can buy back the debentures at the end of two years, according to a press release.

Sanjay Nayar, Chief Executive Officer, KKR India, said: “KKR has successful investments in the healthcare sector globally, including in Hospital Corporation of India and pharmacy chain Alliance Boots. This partnership has been initiated through our alternative credit business in India, and will look to pave the way for a broader engagement between us as partners.”

Apollo will use the investment to pare debt and build more hospitals. The company plans to expand by 1,000 beds across the country by the current fiscal. In cities where it is present, it plans to add birthing centres and hospitals for women and children, while setting up hospitals in seven untapped locations including large cities such as Indore and Patna. It plans to take the number of owned hospitals from the current 38 hospitals to 51, and simultaneously expand its affordable healthcare brand Apollo Reach by 500 beds.

> [email protected]

Published on October 28, 2013
null
This article is closed for comments.
Please Email the Editor