KKR-led Radiant Life Care in talks to take over Max healthcare

KKR-baked firm Radiant Life Care has recently announced that it is actively discussing to acquire Max India’s hospital chain – Max Healthcare. Under the deal, it has been reported that Max Healthcare will be first separated from Max India and will be then merged with Radiant Life Care. The combined entity will be then merged with the holding company KKR, citing two sources familiar with the development.

According to reliable reports, KKR will hold an equal share of 50% in the combined entity. And Abhya Soi, chairman of Radiant Life Care and Analjit Singh, the promoter of Max Group (who holds 51% stake in radiant Life Care) will hold 15% stake each in the listed business enterprise. The public shareholders of Max India will hold the remaining 20% stake.

The overall transaction could value Max Healthcare at over Rs 5,500 crore. For the record, Max India has investment in health verticals, including Max Healthcare and health insurance joint venture Antara Senior Living and Max Bupa.

If sources are to be believed, earlier in September this year, Radiant Life agreed to acquire the entire 49.7% stake of the Life Healthcare Group Holdings in South Africa in Max Healthcare Institute Ltd., in a USD 293 million deal.

As reported by The Economic Times, Max India earlier had bought a 3.75% stake from IFC (International Finance Corp) in Max Healthcare for Rs 211.57 crore, at the rate of Rs 105 per share for the year 2017-2018.

Industry experts deem that this price has been set as the benchmark for the proposed merger.

Sources report that the deal structure is not yet finalized but the board members of the Max India are expected to meet around the coming week to take final call.

About Radiant Life Care Private Limited

Radiant was set up in 2000 with an aim of managing, developing, redeveloping, and operating healthcare facilities. The leading hospital management company was then backed by the global investment firm KKR in 2017, under a definitive agreement where KKR invested USD 200 million to take hold of 49% stake in Radiant.
About Max Healthcare Institute Limited

A hospital chain based in New Delhi, Max Healthcare Institute operates 14 hospitals across the North India. This healthcare institute is a joint venture between Life Healthcare, South Africa and Max India.