Max India on Monday said that Radiant Life Care Private Limited, a leading Indian hospital management company promoted by Abhay Soi and backed by global investment firm KKR, has entered into a transaction under which its shareholders will acquire a majority stake in Max Healthcare Institute Limited (MHC), a unit of Max India.
According to a press release issued by Radiant Life Care on Monday, the acquisition will be undertaken through a series of transactions, including Radiant’s purchase of a 49.7 per cent stake in Max Healthcare from South Africa-based hospital operator Life Healthcare in an all-cash deal, followed by the demerger of Radiant’s healthcare assets into MHC.
The shareholders of Max India will receive one share each of the new company for every five shares held.
“The dramatic changes in the external environment, especially following the Shalimar Bagh incident in November 2017, disrupted MHCs financial trajectory in the final quarter of FY18. There were various other factors, regulatory and voluntary, that had a dampening impact on MHC’s financial performance during the year,” the company said in a 2017-18 annual report.
Meanwhile, Max India, the holding company for Max Healthcare, Max Bupa (Health Insurance) and Antara Senior Living, is organizing a conference call on Friday, January 4, 2019 at 12 noon for investors and analysts to discuss Radiant Life Care and KKR purchase of majority stake in Max Healthcare through the merger.
At 12:53 pm, Max India was trading 5.5 per cent higher at Rs 84.90 on BSE, as compared to a 0.62 per cent rise in the S&P BSE Sensex. A combined 2.41 million equity shares changed hands on the counter on the BSE and NSE so far.