KKR-backed hospital management firm Radiant Life Care has said it will acquire a majority stake in Max Healthcare through a merger to create a combined entity valued at Rs 7,242 crore.
The deal, to be carried out through a series of transactions, will see KKR becoming the majority shareholder while Radiant Life Care promoter Abhay Soi will lead the combined company as Chairman. Max Healthcare promoters led by Analjit Singh will step down.
“The combination of Radiant and Max Healthcare will create the largest hospital network in North India, which will become among the top three hospital networks in India by revenue and the fourth largest in India in terms of operating beds,” the companies said in a joint statement.
The merged entity will operate over 3,200 beds throughout 16 hospitals across India, it added. “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,” it said.
As part of the deal, Max India will demerge its non-healthcare businesses comprising of Max Bupa and Antara Senior Living into a new wholly-owned subsidiary of Max India whose shares will be listed separately on both BSE and NSE. This new company will be spun off, and shareholders of Max India will receive one share of Rs 10 each of the new company for every five shares of Rs 2 each that they hold in existing Max India, it added.