Apollo Hospitals announced a group-level partnership with Kohlberg Kravis Roberts (KKR), an American private equity fund.
The global investment manager would raise Rs. 550-crore long-term investment for Apollo, aimed at setting new benchmarks in the healthcare arena with healthcare excellence meeting the investment connoisseurs.
The partnership involves a Rs. 550 cr. long-term investment by KKR, together with its affiliates and select investors, in PCR Investments, the holding company for the Apollo Hospitals Group. The investment is in the form of as a 5-year callable security that consolidates existing debt at PCR, and initiates a partnership in the healthcare sector across the two firms. Apollo Hospitals will use the fund to repay promoters’ debt and build more hospitals.
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According to Dr. Prathap C. Reddy, Chairman of the Apollo Hospitals Group, “This transaction is the culmination of very involved deliberations with the clear intent of working together to create long-term value for the group, and reflects our philosophy of partnering with players who have a long-term view and deep understanding of the healthcare space.” Sanjay Nayar, CEO for KKR India, said “KKR has a history of successful investments in the healthcare sector globally, including in market-leading businesses like Hospital Corporation of America and Alliance Boots, and we are very excited with the opportunity to partner with Dr. Reddy and family who have created one of India’s finest healthcare businesses. 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.”