Sources told Reuters that private equity firm Kohlberg Kravis Roberts & Co (KKR) had approved a stake purchase in GenesisCare. The deal would have placed value of the Australian healthcare operator at around USD 602 million or AUD 600 million, sources said. Early this week, KKR and GenesisCare had announced that the former had agreed to buy a 63% stake in the latter but did not disclose any financial details. GenesisCare manages and operates a nationwide network of cardiovascular care and cancer care centers in Australia.

The sources further revealed that the estimated value of the transaction was based on a multiple of GenesisCare's earnings before interest, tax, depreciation and amortization or EBITDA. One of the sources said that the EBITDA of the Australian company was AUD 55 to 60 million. In order for KKR to get a majority stake, it would have to pay about AUD 378 million to GenesisCare.

Since 1995, KKR had invested over USD 9 billion in healthcare firms. It is actively looking for opportunities in the Australian retail and healthcare fronts.