American private equity company Bain Capital has reportedly emerged as the frontrunner for the acquisition of a controlling stake in HealthCare Global Enterprises (HCG), an Indian cancer hospital chain.

Sources familiar with this development told Bloomberg that Bain is currently considering purchasing the 60.4% stake owned by CVC Capital Partners in the hospital chain.

The potential acquisition could see Bain paying a premium over the market price, with HCG's shares having dropped by approximately 3% this year, valuing the company at $589m.

CVC's stake is currently valued at around $356m.  

However, discussions are still in progress and may not lead to a final deal.

Other bidders might also enter the fray, according to sources, who requested anonymity.

According to Bloomberg, the healthcare sector in India has seen a surge in private investment due to a growing middle class and the need for better medical infrastructure.  

This has led to increased activity in healthcare-related acquisitions, with companies such as KKR & Co. and Blackstone recently buying stakes in Indian hospitals.  

Established in 1989 in Bangalore, HCG operates 21 cancer care centres in the country and accommodates more than 200,000 patients annually.

CVC Capital Partners first became an investor in HCG in 2020.

HCG offers a wide range of healthcare services, including specialities such as anaesthesiology, cardiology, and critical care medicine.

It is also equipped to offer services related to arthroscopy and sports medicine, cardiothoracic and vascular surgery, clinical immunology, clinical nutrition, dentistry, dietician, dermatology, emergency medicine, and endocrinology, among others.

In June, HCG expanded its network by acquiring a 51% stake in Mahatma Gandhi Cancer Hospital and Research Institute, with plans to increase its shareholding in the future.

The acquisition is valued at approximately $49.6m and exemplifies HCG's growth strategy in the healthcare sector.