Max India in talks to buyout partner in Max Healthcare
New Delhi: Max India on Monday said its board will consider buying out its equal partner in the healthcare business, Life Healthcare Group Holdings, from Max Healthcare only after completion of valuation of their joint venture.
In February this year, Max India had informed stock exchanges that Life Healthcare Group Holdings had initiated preliminary discussions with it to explore the possibility of acquisition of the South Africans firm's shares in Max Healthcare Institute.
"The Board of Directors of Max India will consider the concrete proposal as and when the process of valuation of the shares of Max Healthcare Institute Ltd is completed...," Max India said in a filing to BSE.
It is understood that Life Healthcare Group Holdings is currently undertaking the valuation process.
The relevant disclosure, if any shall be made with stock exchanges within the time prescribed, Max India added.
Max Healthcare is among the top healthcare chains in the country with around 14 hospitals.
ET has reported that Max India is in discussion to buy 47.5 percent stake of Life Healthcare Group Holdings in hospital Chain Max Healthcare and the said transaction is in the range of 450-540 million dollars and if the deal becomes successful the stake of Max India will become 95 percent.
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.
Shrey Viranna, group chief executive, Life Healthcare Group told ET, "Life Healthcare Group is in discussions with Max Healthcare about exiting the Indian market and this is aligned to the group's business strategy and investment outlook. We are not in a position to disclose the valuation process as this is still underway."
Speaking with ET a person said, "Max India's intention is to purchase the entire stake from Life Healthcare Group for which we are arranging the funds."