KKR to infuse up to Rs 300 crore in Baby Memorial Hospital in Kerala
Baby Memorial Hospital is expected to use the funds provided by KKR to settle some debt and expand facilities besides financing some inorganic growth opportunities.
Mumbai: The New York-based Private equity firm, KKR & Co LP has opted to infuse Rs 200 to 300 crore in Kerala-based Baby Memorial Hospital (BMH). BMH is expected to utilize the funds received to settle debts and augment facilities apart from financing some inorganic growth opportunities.
Founded in 1987, BMH was a tribute to late KC Varghese (known as 'Baby'), father of Dr K G Alexander, the Chairman and Chief Physician of the hospital.
In 2018, during the outbreak of Kerala Nipah virus, BMH was in the front line to combat the spread of the Nipah outbreak in the state that killed 15 and sparked panic.
At the moment KKR, one of the world’s largest alternate asset managers has plans to support the group with further capital over time, to help the business in its inorganic initiatives as well, sources told a daily.
Earlier Medical Dialogues had reported that KKR had been into advanced negotiations with Emami Group for a structured credit deal worth Rs 2,000 crore. The money provided would be used to repay the loans raised by promoters and to meet working capital requirements.
According to recent media reports, renowned south Indian actor Mohanlal who holds a significant minority stake in BMH, is said to be inscribing an agreement with KKR shortly and a formal announcement is expected in a couple of weeks.
However, KKR declined to comment on the deal and KG Alexander, chairman and managing director of Baby Memorial Hospital, also said he would not like to comment at this particular juncture.
“BMH is expected to use the funds to settle some debt and expand facilities besides financing some inorganic growth opportunities. This could be significant, considering the healthcare opportunities in northern Kerala,” one of the sources mentioned above told ET.
Coincidently, Last week, six-year-old Ritul Sajeesh had his first birthday without his mother Lini Puthssery, India’s ‘hero’ nurse who died after being infected by Nipah virus from a family under her care.