US-based investment company KKR has agreed to acquire a stake of up to 54% in Healthcare Global Enterprises (HCG), an oncology hospital chain in India, for $400m.

KKR will acquire the stake in HCG from global private markets manager CVC Asia V at a rate of Rs445 ($5.13) a share.

The transaction will position KKR as HCG's largest shareholder and give the company sole control over HCG's operations.

KKR India Private Equity partner and head Akshay Tanna said: “As healthcare continues to be a thematic focus for KKR in India, our investment in HCG will support the development of medical infrastructure and the delivery of critical oncology services and care to more patients in the country.

“We look forward to leveraging KKR’s global healthcare expertise to strengthen HCG’s offerings and working with Dr BS Jaikumar to further enhance HCG’s clinical excellence.”

It is anticipated that KKR's equity stake in HCG will range from 54% to 77% once the transaction has closed.

The deal is expected to be finalised by the third quarter of this year, subject to customary closing conditions being met and regulatory approvals being given.

Established in 1989, HCG currently manages 25 medical care centres in 19 cities.

The hospital chain's infrastructure includes 2,500 beds, almost 100 operating theatres, and 40 linear accelerator machines.

HCG founder Dr BS Ajaikumar will assume the role of non-executive chairman, focusing on academic, clinical and research and development excellence.

Dr Ajaikumar said: “Patient well-being and outcomes will always be a top priority for us at HCG, and in my new role as non-executive chairman, I will focus on clinical aspects involving a multi-disciplinary approach to cancer care, and research and development; and look forward to the journey of HCG where it continues to stay at the forefront of clinical excellence, research, and academics.”