Kohlberg Kravis Roberts (KKR) invests Rs.550 Crore in Apollo Hospital

Apollo Hospitals has entered into a partnership with American private equity fund Kohlberg Kravis Roberts (KKR) to raise Rs 550 crore to repay promoters' debt and build more hospitals. The partnership involves a Rs 550 crore long-term investment by KKR, together with its affiliates and select investors, in PCR, the holding company for the Apollo Hospitals Group.

The PE fund will subscribe to the convertible debentures issued by Prathap Reddy's holding company PCR Investments with an option to convert these debentures into equity shares of listed Apollo Hospitals at the end of five years, Apollo Hospitals said. The promoters also will have the right to buy back these instruments at the end of two years, it added. At the end of September quarter, PCR Investments held 18.42 percent stake in Apollo Healthcare.