Investment firm KKR, through its portfolio company Radiant Life Care Private Limited, will buy more than 266 million shares in Max Healthcare at Rs 80 per share.
MUMBAI: South African private hospital group Life Healthcare has sold its entire 49.7% stake in Max Health to Radiant Hospital (backed by KKR group) for $293 million, a move that makes Radiant a significant player in the highly competitive healthcare space. KKR Radiant will be buying more than 266 million shares in Max Healthcare at Rs 80 per share.
Radiant led by Abhay Soi is into the business of developing and redeveloping hospitals to provide high-end quaternary care. In 2010, Radiant forayed into healthcare with the re-development and commissioning of BLK, a 650-bed hospital and one of the largest private sector hospitals in Delhi and NCR. Beside this Radiant had collaborated with the Nanavati Hospital Trust in 2014 to take over the operations of Nanavati, a 350-bed multi-speciality hospital.
Max Healthcare, a subsidiary of Max India is a subsidiary of Max India in which Life Healthcare and Max India each own 49.7% stake whereas Analjit Singh and his family own 40.97 percent of the listed Max India, which has other subsidiaries including Max Bupa, which is healthcare insurance joint venture, and Antara, a senior-living platform.
“The Company will initially use the net disposal proceeds to settle debt as well as to invest in growth opportunities in its core markets,” the group said in a statement.
Shares in Life Healthcare jumped as much as 8.42% to 26.90 rands.
Investment firm KKR, through its portfolio company Radiant Life Care Private Limited, will buy more than 266 million shares in Max Healthcare at Rs80 per share.
The deal is expected to be finalized before the end of the year.
Max Healthcare is a leading hospital group in India, operating hospitals in New Delhi, Punjab and Uttarakhand.
Max India has several subsidiaries and joint ventures including Max Healthcare, Antara Senior Living, Max UK Ltd, and Max Healthcare Institute Ltd. Life Healthcare and Max India each own 49.7% of Max Healthcare, a subsidiary of Max India. The promoters, Singh’s family, own 40.97% of the listed Max India, which also houses the Max Bupa healthcare insurance joint venture and Antara, a senior-living platform. With this acquisition, Radiant will be in the league of likes of Apollo Hospital and IHHFortis.
In 2012, Life Healthcare acquired 26% stake in Max Healthcare for Rs 516 crore, two years later it further acquired 20% making it 46% by investing an additional Rs766 crore at Rs 67 per share.