Healthcare company Max India Ltd said on Monday it will sell a stake in its healthcare services joint venture Max Healthcare Institute Ltd to Radiant Life Care Pvt Ltd and global investment firm KKR.
The deal includes Radiant Life's purchase of a 49.7 percent stake in Max Healthcare from South Africa-based hospital operator Life Healthcare International Proprietary Ltd.
“It is a seminal moment for us. With respect to the merger, it is a series of transactions. In the first step itself, we will be buying 49 percent of stake in Max Healthcare through acquisition of Life South Africa’s stake which will then be followed by acquisition or a merger with Max Healthcare. This is subsequent to a demerger of Max India Ltd as well as Radiant Healthcare,” said Abhay Soi, who will be chairman of the combined entity.
“The entire transaction post listing also involves purchase of 4.99 percent stake by KKR. Going forward, the company will be promoted by myself with 23.2 percent stake, it will be promoted by KKR with 51.9 percent stake and the present promoters of Max Healthcare will continue with 7 percent stake. At that point of time when finally all of this is done, they will apply for declassification as promoters will be stepping down,” said Soi.