Macquarie-backed China Resources is set to purchase cancer and cardiac service provider GenesisCare for $1.7 billion, Street Talk revealed on Monday.

According to Financial Review, Macquarie and China Resources won the preferred bidder status on Sunday for the Kohlberg Kravis Robert's healthcare provider GenesisCare. Now, it depends on the Foreign Investment Review Board (FIRB) to permit the transaction.

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The partnership is investing in management and 150 or so doctors for a stake of between 50 and 70 percent, although the deal is still subject to the shareholders' approval.

KKR & Co, which bought a major stake in GenesisCare in August 2012 for an enterprise value of $550 million, is selling its entire 45 percent stake.

If the sale pushes through, founder Dan Collins, who is poised to reap between $50 million and $100 million from the sale, will remain as the managing director of GenesisCare. Also, other executives may gain cash following the deal since the management is understood collectively to own about nine percent of the operation.

Furthermore, the consortium plans to expand the business across Europe and to gain access to the Chinese health market.

Macquarie and China Resources are competing against Citigroup-advised Bain Capital, The Carlyle Group, and China's Ping An. Sources reveal that in case China Resources fails to secure an FIRB approval, the two private equity firms are keen to re-engage.

Meanwhile, the date for submitting the final bids will be on July 25 in a sales process handled by UBS and Credit Suisse. According to The Australian, Macquarie Capital is advising China Resources but refused to comment on the company's status in the contest.

TagsChina Resources, Macquarie Capital, GenesisCare, Healthcare Industry, KKR