KKR-backed hospital management firm Radiant Life Care Friday said it has completed the acquisition of a 49.7 per cent stake in Max Healthcare from South Africa-based Life Healthcare.
Radiant Life Care promoter Abhay Soi will now lead Max Healthcare as chairman of its board and executive council, the companies said in a joint statement.
Radiant's stake acquisition is one of the several steps that will eventually result in Soi and KKR together acquiring a controlling stake in Max Healthcare by combining the healthcare assets of Max Healthcare, Max India Ltd and Radiant to create the largest hospital network in North India, it added.
As part of the transaction, Max India's promoters will receive an advance of Rs 361 crore from KKR in exchange for a 4.99 per cent stake in the merged entity. Max India's promoters will use the funds for deleveraging purposes, the statement said.
"The merger and the future planned expansion will provide the scale that MHC (Max Healthcare) needs for profitable growth at a time when healthcare margins are being tested," Max Group founder and Chairman Analjit Singh said.
In similar vein, Radiant Life Care and Max Healthcare Chairman Abhay Soi said, "We believe we have all the wherewithal to grow our business organically and inorganically during this challenging phase for the healthcare sector."
Radiant funded this acquisition with an investment from KKR's Asian Fund III, the statement said.
KKR India member and Chief Executive Officer Sanjay Nayar said, "We are excited about building Max Healthcare into an outstanding company governed by world-class board members and standing for the highest standards of clinical outcomes."
The process of combining Radiant Life Care and Max Healthcare and the eventual listing of Max Healthcare is underway, and is likely to be completed in 6 to 8 months, the statement said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)