- HCG will buy a 93.66 per cent stake in Nairobi-based Cancer Care Kenya Ltd (CCK) for Sh93.15 million in cash, the Indian company said in a stock-exchange filing.
- HCG said it had signed a pact with MP Shah Hospital and CCK’s promoters to buy shares of the target company.
- The transaction, subject to approval by the Competition Authority of Kenya, is likely to be completed by the end of June, the company said.
Bangalore-based Healthcare Global Enterprises Ltd (HCG), one of India’s largest cancer treatment hospital chains, has agreed to buy a majority stake in a Kenyan cancer care centre.
HCG will buy a 93.66 per cent stake in Nairobi-based Cancer Care Kenya Ltd (CCK) for Sh93.15 million in cash, the Indian company said in a stock-exchange filing.
HCG will acquire the stake through step-down subsidiary HealthCare Global (Kenya) Pvt Ltd.
CDC, a UK development finance institution which has partnered with HCG for African investments—through an investment in HCG’s off-shore subsidiary that will make the acquisition — and MP Shah Hospital, a leading tertiary care hospital in Kenya, will also participate in the transaction.
N Adamali, the founder of CCK, will retain his shareholding in the company.
CCK, which started operations in Nairobi in 2010, is said to be the first private comprehensive cancer centre in the country.
It treats over 1,000 patients annually including over 200 patients from other African nations. CCK’s team includes internationally trained radiation, medical and surgical oncologists, physicists, radiation technicians and oncology nurses.
HCG said it had signed a pact with MP Shah Hospital and CCK’s promoters to buy shares of the target company.
After the pact is concluded, HCG will have a 77.5 per cent stake in Cancer Care Kenya while MP Shah Hospital will have 10 per cent. The target company’s promoters will have the remaining 12.5 per cent stake.
“We expect to bridge the demand-supply gap existing in the cancer care space in Kenya where patients have to travel out of the country for services due to inadequate treatment facilities,” HCG said.
The transaction, subject to approval by the Competition Authority of Kenya, is likely to be completed by the end of June, the company said.
HCG is backed by PremjiInvest, the investment arm of Wipro Ltd, chairman Azim Premji and World Bank arm International Finance Corporation. Earlier this month, PremjiInvest sold a 2.54 per cent stake in the company.
HCG, which has 17 cancer treatment centres across India, made its stock market debut one year ago.
“There are over 250,000 new cancer incidents each year in Eastern Africa, resulting in a huge and growing unmet need for advanced cancer care. Thousands of patients travel overseas for treatment due to the lack of access to advanced cancer care.
‘‘To ensure the best clinical outcomes, we have been seeking to find the right opportunities to establish advanced treatment options in the region,” said Dr B.S. Ajaikumar, chairman of HCG.
ALSO READ: VAT on cancer kit removed to cut bills