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Radiant Life Care completes acquisition of 49.7% stake in Max Healthcare

As part of the transaction, Max India's promoters have received an advance of Rs 361 crore (USD 52.2 million) from KKR in exchange for a 4.99% stake in the merged entity

twitter-logo PTI   New Delhi     Last Updated: June 22, 2019  | 22:03 IST
Radiant Life Care completes acquisition of 49.7% stake in Max Healthcare

Radiant's promoter Abhay Soi appointed Chairman of Max Healthcare Max India promoters receive an advance of Rs 361 crore from KKR for a 4.99% stake in merged entity; funds have been used for deleveraging.

Radiant Life Care Private Limited ( Radiant ), a leading Indian hospital management company promoted by Abhay Soi and backed by KKR, has completed the previously announced acquisition of a 49.7% stake in Max Healthcare Institute Limited ( Max Healthcare or MHC ) from South Africa-based hospital operator Life Healthcare. Abhay Soi will now lead Max Healthcare as Chairman of its Board and Executive Council.

Radiant's stake acquisition is one of several steps that will eventually result in Mr. Soi and KKR together acquiring a controlling stake in Max Healthcare by combining the health care assets of Max Healthcare, Max India Limited ( Max India ), and Radiant to create the largest hospital network in North India.

As part of the transaction, Max India's promoters have received an advance of Rs 361 crore (USD 52.2 million) from KKR in exchange for a 4.99% stake in the merged entity. Max India's promoters have used the funds for deleveraging purposes.

Analjit Singh, Founder & Chairman of Max Group, said, Max Healthcare and Radiant possess complementary sets of capabilities in running healthcare establishments and KKR brings with it extensive global experience in healthcare investments and capabilities in prudent financial management. Radiant-KKR are the best suited partners to further the culture of clinical and service excellence that Max Healthcare has become known for. The merger and the future planned expansion will provide the scale that MHC needs for profitable growth at a time when healthcare margins are being tested. I also want to thank our outgoing JV partner Life Healthcare for being supportive participants in MHC's growth and progress.

Mohit Talwar, Vice Chairman of Max Group, said, The combination of Max Healthcare-Radiant will give shareholders the opportunity to benefit from the performance of the third largest hospital chain in a rapidly growing Indian healthcare market. It will also allow Max India to focus on enhancing shareholder value creation by growing our other businesses and seeding new ones.

Abhay Soi, Chairman Radiant Life Care and Max Healthcare, said, I am happy to have been able to complete the acquisition of Life's stake in Max Healthcare as a first step towards integration of the two companies, and fortunate to have a PE firm such as KKR backing us in our journey. We believe we have all the wherewithal to grow our business organically and inorganically during this challenging phase for the healthcare sector. Our interests are also very aligned with our Prime Minister's vision of strengthening brand India globally by focusing on the 5 T's of tourism, tradition, technology, trade and talent."

Sanjay Nayar, Member & CEO of KKR India, added, 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.

Radiant funded this acquisition with an investment from KKR's Asian Fund III.

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, subject to receipt of the requisite approvals.

About Radiant Life Care Radiant is promoted by Abhay Soi and is in the business of developing/redeveloping hospitals to provide high end quaternary care. Presently, Radiant has two iconic facilities in its portfolio namely: BLK Super Specialty Hospital, Delhi and Nanavati Super Specialty Hospital, Mumbai.

Radiant forayed into healthcare in 2010 with the re-development and commissioning of BLK, a 650-bed hospital, one of the largest private sector hospitals in Delhi and NCR. Besides this flagship hospital, Radiant collaborated with the Nanavati Hospital Trust in 2014 to take over the operations of Nanavati, a 350-bed multi-specialty hospital. Over the next four years, Radiant plans to transform Nanavati into a 900-bed state-of-the-art quaternary care institute and expand BLK by another 200 beds.

For additional information, please visit the company's website at www.radiantlifecare.com About Max Healthcare Max Healthcare (MHC) is the Country's leading comprehensive provider of standardized, seamless and international-class healthcare services. It is committed to the highest standards of medical and service excellence, patient care, scientific and medical education.

Max Healthcare has 14 facilities in North India, offering services in over 30 medical disciplines. Of this, 11 facilities are located in Delhi & NCR and the others in Mohali, Bathinda and Dehradun. The Max network includes state-of-the-art tertiary care hospitals in Saket, Patparganj, Vaishali, Shalimar Bagh, Mohali, Bathinda and Dehradun, secondary care hospitals at Gurgaon, Pitampura, Noida & Greater Noida and an out-patient facility and speciality centre at Panchsheel Park. The Super Speciality Hospitals in Mohali and Bathinda are under PPP arrangement with the Government of Punjab.

Max Healthcare has a base of over 3,000 doctors, 10,000 employees and over 2.2 million patients from over 80 countries, across its network of 14 hospitals.

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