Exclusive-KKR eyes at least $1 billion stake in Medicover's India hospital arm, source says

By Vibhuti Sharma

MUMBAI, June 18 (Reuters) - KKR is in advanced talks to buy a majority stake in the Indian business of Sweden's Medicover for at least $1 billion, a source with direct knowledge of the matter said, a deal that would expand its healthcare bet in the world's most populous nation.

Stockholm-listed Medicover issued a press release soon after Reuters sent a request for comment on Wednesday night, saying Medicover Hospitals India is in discussions with KKR "regarding a potential sale of its Indian operations."

The company did not provide any details and Reuters is first to report that talks are ongoing for KKR to take a majority stake in the Indian business unit for at least $1 billion.

Medicover, which entered the country in 2016, operates a network of 26 hospitals with around 6,000 beds. In its statement, it said it has also been preparing for an Indian initial public offering.

Sweden's Medicover owns 66.9% of Medicover Hospitals India. KKR is seeking to acquire the Swedish firm's entire stake for at least $1.05 billion and is also in discussions with minority shareholders.

The "discussions are ongoing and a non-binding agreement has been reached," said the person, who declined to be named publicly as the talks are private.

Medicover did not respond to Reuters queries and KKR declined to comment.

INTEREST IN HOSPITALS

In its press release, Medicover said there is no certainty that discussions with KKR will result in any transaction and that the firm is continuing with the IPO process.

KKR has been steadily increasing its healthcare investments in India. In 2024, the buyout firm bought a controlling stake in a hospital chain in the southern state of Kerala and has since backed the hospital group's expansion through acquisitions.

India's hospital sector has attracted strong investor interest as rising incomes, expanding health insurance coverage and growing demand for quality healthcare drive consolidation and capacity expansion across the industry.

Medicover competes with Apollo Hospitals, Aster Hospitals, and Fortis Healthcare in India.

Rothschild is advising on the sale process, while Kotak is advising KKR, the person added.

Kotak and Rothschild did not respond to Reuters queries.

Medicover's India unit reported annual revenue of $234.6 million in 2025, up nearly 1% from a year earlier. The Indian business accounts for more than half of the group's hospitals globally.

(Reporting by Vibhuti Sharma; Editing by Aditya Kalra and Thomas Derpinghaus)