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KKR to sell entire 26% Max Healthcare stake for Rs 9,416 crore today

American PE major exits from hospital chain after acquiring the stake in 2018

Max Healthcare | KKR

Dev Chatterjee  |  Mumbai 

Max hospital

American private equity major and Co will sell up to 26.83 per cent in Institute for Rs 9,416 crore via block deals on Tuesday.

The offer, managed by Jeffries India and Kotak Securities, India, will mark the exit of from the company.

According to the terms of the transaction, the shares will be sold at Rs 350 to Rs 362 a share — a discount of 3.29 per cent to its closing price on Friday. A host of mutual funds, insurance and other investors are expected to participate in the offer.

KKR to sell up to 26% stake in Max Healthcare for Rs 9,416 cr tomorrow

In March this year, Radiant, a affiliate, had sold a 10 per cent stake in Institute for nearly Rs 3,300 crore at Rs 340 a share. According to the terms, KKR will offer a 20 per cent stake in the company to investors and has kept a greenshoe option of another 6 per cent.

KKR and Radiant had bought 49.7 per cent in in 2018 for Rs 2,120 crore. Radiant had acquired the other joint venture partner, South Africa-based hospital operator Life Healthcare, and merged its own assets into Max Healthcare. The entity had over 3,200 beds in 16 hospitals across India. For the financial year ended March 2022, the company had reported Rs 1,729 crore as revenue and made a profit of Rs 331 crore.

In September last year, KKR had sold part of its stake for Rs 2,956 crore as part of its exit strategy.

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First Published: Mon, August 15 2022. 17:36 IST