Bain Capital, Radiant Life care in race for buying Max Healthcare stake

Mumbai: After KKR backed Radiant Life Care, another private equity firm has entered into the fray to buy 47.5 percent stake in Max Healthcare from the existing holder Life Healthcare.

ET has reported that Bain Capital Private Equity has also joined the race with KKR led Radiant Life Care to buy 47 percent stake in Max Healthcare from Life Healthcare, a South Africa based firm for between $450 million and $540 million.

In January KKR-backed Radiant Life Care initiated a preliminary discussion to acquire the stake of Life Healthcare in Max Healthcare.

Read also: Owner of BLK Hospital, Radiant Life care looks to buy Max Healthcare stake

A person told ET, “KKR-Radiant and Bain Capital have started discussions on purchasing Life Healthcare’s stake in the company.”

Currently, Max India owns 47.5 percent and Life Healthcare also owns 47.5 percent in the hospital chain while the rest 5 percent is with the key management executives of the company.

Read also: Max India to buy more stake in Max Healthcare

Medical Dialogues had reported in April that Max India board was considering to buyout its equal partner in the healthcare business, Life Healthcare Group Holdings, from Max Healthcare only after completion of valuation of their joint venture. Thus intention of state sale by Life healthcare created a buzz around the investment circuit with more participants coming to buy the said share.

Read also: Max India in talks to buyout partner in Max Healthcare

When asked about the development, a Life Healthcare spokesperson told ET, “We cannot comment on any detail of the discussions relating to the transaction.”

Max Healthcare, which is a joint venture between Analjit Singh and Life Healthcare, runs 14 hospitals with 2,500 beds across north India and is a big player in the Indian healthcare sector.

Recently, KKR-Radiant loses the battle with Malaysia’s IHH Healthcare for Fortis Healthcare.